According to Bloomberg, there is only a 30% chance that the U.S. federal government will overhaul its strategic reserve strategy and purchase Bitcoin this year.
If the U.S. decides to make such a move, it could utilize funds from the Exchange Stabilization Fund (ESF), which is typically used for foreign reserve intervention. However, Bloomberg projects that Congress will likely not approve any Bitcoin purchases within the next two years, suggesting that Bitcoin reserve momentum will slow significantly this year.
All Sizzle, No Steak
As reported by U.Today, the U.S. officially established a Bitcoin reserve through an executive order on March 6. While this was seen as a notable step in legitimizing Bitcoin, it fell short of high expectations and led to a 7% drop in Bitcoin’s price since the order was issued.
The Bitcoin reserve will consist of coins forfeited by the government, leading to criticism from some within the community who argue that the reserve merely reflects coins the U.S. already holds, rather than new purchases.
Pro-crypto Treasury Secretary Scott Bessent mentioned to CNBC earlier this month that halting Bitcoin sales would be a necessary first step, and he did not dismiss the possibility of the U.S. government beginning to buy Bitcoin for the reserve.
Although the total Bitcoin holdings of the U.S. government remain undisclosed, they are estimated to be around 200,000 coins.
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