White House’s Decision on Bitcoin in 2025: What You Need to Know
Despite the increasing popularity of digital currencies, experts believe that the U.S. government is unlikely to purchase Bitcoin in 2025. Although Bitcoin and other cryptocurrencies are gaining traction among investors and users, government officials are still cautious about fully embracing them for official use or as part of national reserves.
Currently, the U.S. holds 183,850 BTC, valued at over $17 billion. There are no plans to increase Bitcoin investments at this time, with a focus on capitalizing on the current holdings. Even after important events in 2024, such as the launch of spot-based Bitcoin ETPs in the U.S. and the re-election of Donald Trump, experts predict that Bitcoin adoption in the U.S. will not see significant expansion.
According to Galaxy Research’s head of research, Alex Thorn, the U.S. will not be making new Bitcoin purchases in 2025. Instead, they are expected to utilize their existing Bitcoin holdings while exploring conversations about a Bitcoin reserve policy. By the end of 2025, it is estimated that the U.S. will pass legislation to regulate stablecoin issuers. Stablecoins are a type of cryptocurrency pegged to assets to maintain price stability.
Thorn believes that the increase in USD-backed stablecoin supply will support dollar dominance and Treasury markets. This, along with anticipated easing of restrictions for banks, trusts, and depositories, is expected to drive significant growth in stablecoin adoption.
In other predictions from Galaxy Research, Dogecoin, a meme-based cryptocurrency, is expected to reach $1 per coin, pushing its market capitalization to $100 billion. Dogecoin has gained popularity among cryptocurrency enthusiasts and investors due to its meme origins and celebrity endorsements.
Overall, while Bitcoin adoption by the U.S. government may not be on the horizon, the cryptocurrency landscape continues to evolve with new regulations and developments in the market.
