WPBN: Experts predict that the U.S. government is unlikely to buy Bitcoin in 2025, despite the growing popularity of digital currencies.
Even though Bitcoin and other cryptocurrencies are still becoming more popular among users and investors, government representatives are still hesitant to accept them entirely for official usage or as a component of national reserves.
The US government intends to profit from its existing holdings.
The acceptance of Bitcoin in the United States is still a little hazy. The United States currently owns 183,850 Bitcoin, or slightly more than $17 billion. To capitalize on their current holdings, the U.S. has not yet shown any plans to enhance their Bitcoin stakes.
Even if there were two significant occurrences in the United States in 2024 that had a direct impact on the wider adoption of Bitcoin in the country, analysts continue to predict that the cryptocurrency will not be growing anytime soon.
In a report published on December 27, Alex Thorn, chief of research at Galaxy Research, stated that the US government would not buy Bitcoin in 2025.
However, Thorne predicts that while discussions on a Bitcoin reserve policy continue, the United States will build up a stockpile using the Bitcoin they currently own.
Additionally, Thorne predicts that the United States will enact laws to establish a legal framework for regulating stablecoin issuers by the end of 2025. Stablecoins are a subset of cryptocurrencies that rely on other assets, such as fiat money or commodities, to keep their value steady.
Thorne claims that the rising supply of USD-backed stablecoins supports dollar supremacy and the Treasury markets and will significantly increase the use of stablecoins when paired with the anticipated relaxation of regulations for banks, trusts, and depositories.
Dodgecoin is anticipated to reach $1 million
Galaxy Research also predicts that Dogecoin, a cryptocurrency that has gained notoriety as a “memecoin,” would eventually hit $1 per coin, increasing its market valuation to $100 billion.
Due in large part to its meme beginnings and celebrity endorsements, Dogecoin has gained popularity among cryptocurrency fans and investors, making this a noteworthy milestone.
However, they also anticipate that cost-cutting solutions will be successfully identified and implemented by the new “Department of Government Efficiency,” which is led by Vivek Ramaswamy and Elon Musk.
These reductions will surpass Dogecoin’s market value at its 2025 peak. To put it another way, the Department of Government Efficiency is anticipated to save costs by more than the $100 billion Dogecoin is predicted to fetch.
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Other countries are still keeping an eye on U.S. Bitcoin moves
Other countries may continue to lead the way despite U.S. reluctance, even though international governments are still keeping an eye on the U.S. government’s decisions. Japan, for example, has acknowledged that it is waiting to see what steps the U.S. takes regarding cryptocurrencies before making its own decisions.
Jianing Wu, an analyst at Galaxy Research, projects that five significant corporations on the Nasdaq 100 index will declare that they have included Bitcoin on their financial sheets.
Furthermore, it is anticipated that five nations may include Bitcoin in their sovereign wealth funds, some of which may be hostile or unaligned with the US. As Bitcoin use grows, competition may emerge between countries, particularly those with sizable sovereign wealth funds or those that are not allied with Western powers.
These countries, who view Bitcoin as a vital resource for future economic and geopolitical influence, will search for ways to mine it or obtain it in other ways.
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It is anticipated that Bitcoin will grow beyond its current use as a speculative investment to become a more significant component of national financial plans and business balance sheets, becoming a more widely recognized and desired asset by both nations and corporations.
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