It’s been nearly a year since the establishment of the Strategic Bitcoin (CRYPTO: BTC) Reserve, and the results thus far are underwhelming. Currently, Bitcoin’s price sits over 45% lower than its peak.
However, this situation might soon shift. Cathie Wood from Ark Invest proposed that the U.S. government could start acquiring Bitcoin for the Strategic Reserve in January, potentially before the 2026 midterm elections. This action could provide the impetus Bitcoin investors have long awaited.
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Initially, plans for 2024 involved the U.S. government acquiring 1 million BTC, roughly 5% of the total supply, which would render it the largest global Bitcoin holder, according to Motley Fool research.
Some proposals suggest even more extensive Bitcoin acquisitions. Michael Saylor, founder and executive chairman of Strategy (NASDAQ: MSTR), envisions the U.S. government holding 25% of all circulating Bitcoin by 2035.
This ambitious purchasing strategy aims to ensure that the U.S. solidifies its status as the “crypto capital of the world,” simultaneously establishing a reliable demand source to stabilize Bitcoin’s price over the next decade.
Such moves would greatly impact Bitcoin investors, as the purchase of Bitcoin by a global superpower would differ significantly from smaller treasury companies buying in the market. Moreover, if the U.S. engages in consistent Bitcoin buying, it may inspire other countries to join the crypto landscape, potentially sparking a “Bitcoin arms race” among nations.
