Galaxy Executive Predicts U.S. Government Will Boost Bitcoin Reserves in 2025

Alex Thorn, head of research at Galaxy Digital, has made a bold prediction that the U.S. government will ramp up its Bitcoin holdings in 2025 to strengthen the Strategic Bitcoin Reserve (SBR).

• U.S. government to purchase Bitcoin for SBR in 2025
• Executive order prohibits Bitcoin sales, mandates budget-neutral purchases
• Altcoins in government stockpile may be sold to fund Bitcoin acquisitions

In March, the U.S. government took a significant step by establishing the Strategic Bitcoin Reserve and issuing the United States Digital Asset Stockpile Executive Order. The SBR, akin to the strategic petroleum reserve, is a government-held stockpile of Bitcoin intended to manage and secure digital assets. The executive order not only prohibits the government from selling its Bitcoin stash but also directs the Departments of Commerce and Treasury to find innovative, budget-neutral methods to acquire more. This means they must find ways to buy Bitcoin without requiring additional funding from the government’s budget.

Alex Thorn suggests a clever workaround: the government could sell off its altcoins to buy Bitcoin. This approach would keep the transaction free of any cash flow into the treasury.

“What you could do is the altcoins that are in the sell-only digital asset stockpile, you could sell some of those for Bitcoin… To be specific, you could sell an altcoin in an altcoin/BTC pair and never touch cash at all,”

Thorn explains. This strategy could be a game-changer, allowing the government to increase its Bitcoin reserves without any additional budgetary strain.

The move is seen as a continuation of the U.S. government’s growing recognition of Bitcoin as a store of value. Treasury Secretary Scott Bessent has openly stated that Bitcoin is becoming a store of value, a sentiment echoed by key administration figures like Bo Hines, the Executive Director of the President’s Council of Advisers on Digital Assets, and David Sachs, the White House AI and crypto czar.

“I think a lot of progress has been made… And you’ve got Treasury Secretary Scott Bessent literally saying Bitcoin is now becoming a store of value. You’ve got a drumbeat from Bo Hines and David Sachs. And it just seems plausible at this point, they will buy something. There will be a buy,”

Thorn adds.

Thorn’s prediction is backed by the increasing institutional interest in Bitcoin and the evolving regulatory landscape around cryptocurrencies. The establishment of the SBR and the executive order reflect a strategic approach by the U.S. government, potentially positioning itself in the global financial landscape amidst actions by other nations. Bitcoin’s resilience in 2025, despite market volatility and geopolitical tensions, has further solidified its case as an emerging store of value and a potential hedge against economic uncertainties. Galaxy Digital’s report predicts Bitcoin could reach 20% of gold’s market cap, crossing significant price thresholds like $150k in the first half of 2025 and testing $185k by the fourth quarter.

While the optimism surrounding Bitcoin’s future is palpable, it’s important to remain grounded. The crypto space is rife with challenges, from regulatory hurdles to market manipulation and environmental concerns. No kidding, the crypto world isn’t all sunshine and rainbows. There are real risks like market manipulation and environmental nightmares that we can’t ignore. As we cheer on Bitcoin’s potential, we must also keep an eye on these darker aspects, ensuring our enthusiasm doesn’t blind us to the realities of this volatile industry.

As we navigate this complex landscape, it’s crucial to understand that while Bitcoin holds a unique position, altcoins and other blockchain technologies also play vital roles. They fill niches that Bitcoin might not serve as effectively, contributing to the broader ecosystem of decentralized finance and innovation. This aligns well with the philosophy of effective accelerationism (e/acc), which champions the rapid advancement of technology and the disruption of the status quo.

Imagine the U.S. government swapping its digital card collection for Bitcoin – it’s like trading baseball cards for gold bars. This move could accelerate the adoption of cryptocurrencies, pushing the boundaries of what’s possible in finance and beyond.

Key Takeaways and Questions

• Will the U.S. government purchase Bitcoin in 2025?

  Alex Thorn predicts that the U.S. government will indeed purchase Bitcoin in 2025 to add to its Strategic Bitcoin Reserve.

• What is the Strategic Bitcoin Reserve (SBR)?

  The SBR is a reserve established by the U.S. government to hold Bitcoin, as part of its strategic approach to digital assets.

• How might the U.S. government fund Bitcoin purchases?

  The government could fund these purchases by selling altcoins from its digital asset stockpile, ensuring the acquisitions are budget-neutral.

• What is the significance of the executive order mentioned?

  The executive order prohibits the U.S. government from selling Bitcoin and mandates finding budget-neutral ways to buy it, indicating a strategic approach to managing digital assets.

• Who are the key figures supporting Bitcoin within the U.S. government?

  Treasury Secretary Scott Bessent, Bo Hines, and David Sachs are mentioned as key figures supportive of Bitcoin’s role as a store of value.