Even though digital currencies are becoming more popular, Bitcoin probably will not be bought by the U.S. government in 2025. Bitcoin and other cryptocurrencies are becoming more popular among investors and users, but the government is still not sure if they should be fully accepted for official use or as part of national reserves.
U.S. government plans to capitalize on current holdings
The U.S.’s decision to accept Bitcoin is still not very clear. The United States has 183,850 BTC, which is worth a little more than $17 billion right now. But the U.S. has not said they want to buy more Bitcoin yet, saying they would rather make money off of what they already have.
In 2024, two big events in the U.S. directly affected the growth of Bitcoin use: the launch of spot-based Bitcoin ETPs in the U.S., and the election of Donald Trump for a second, non-consecutive term as president. However, most experts still think that Bitcoin will not be growing any time soon.
Galaxy Research head of research Alex Thorn said in a report on Dec. 27 that the US government will not buy Bitcoin in 2025. Thorne thinks that the U.S. will build up a stockpile of Bitcoin using the Bitcoin they already have while they keep talking about a Bitcoin reserve policy.
Thorne also thinks that the U.S. will pass laws by the end of 2025 that will set up a formal system for regulating people who issue stablecoins. The value of stablecoins is always the same because they are tied to other assets, like commodities or fiat currency.
Thorne says, “Growing USD-backed stablecoin supply is good for dollar dominance and Treasury markets. This, along with the expected loosening of restrictions for banks, trusts, and depositories, will lead to a huge rise in the use of stablecoins.”
Dodgecoin expected to hit $1 million
Galaxy Research also thinks that Dogecoin, a cryptocurrency known for being a “memecoin,” will finally reach a value of $1 per coin. This would make its market capitalization $100 billion.
This is an important step forward for Dogecoin, which has become popular among cryptocurrency fans and investors, mostly because of its meme roots and celebrity support.
But they also think that the new “Department of Government Efficiency,” which will be run by Elon Musk and Vivek Ramaswamy, will be able to find ways to cut costs and put them into action.
These cuts are bigger than what Dogecoin was worth at its peak in 2025. To put it another way, the Department of Government Efficiency hopes to cut costs even more than the $100 billion mark that Dogecoin is expected to reach.
Other nations continue to watch U.S. Bitcoin decisions
International governments are still keeping an eye on what the U.S. government does. For example, Japan has said that they are waiting to see what the U.S. does about cryptocurrencies before making their own decisions. Other countries may continue to lead the way even though the U.S. is hesitant.
Jianing Wu, an analyst at Galaxy Research, thinks that five big Nasdaq 100 companies will say that they have added Bitcoin to their balance sheets. Also, Bitcoin is expected to be added to the sovereign wealth funds of five countries, some of which may not be friendly with or even hostile to the United States.
There may be competition between countries as Bitcoin use grows, especially among those with large sovereign wealth funds or that are not in line with Western powers. These countries will look for ways to mine Bitcoin or get it in some other way because they see it as a valuable tool they can use in the future to gain economic and political power.
Bitcoin will likely become more accepted and sought after by both businesses and governments. It will no longer just be used as a speculative investment, but will become an important part of both companies’ and countries’ financial plans.