U.S. Government Considers Bitcoin Purchases for Strategic Reserve

ARK Invest’s Cathie Wood suggests future U.S. government Bitcoin purchases, diverging from current reliance on seized assets to strengthen a national Bitcoin strategic reserve.

The potential policy shift could significantly impact Bitcoin’s market, signaling government endorsement and influence on cryptocurrency adoption discussions.

Cathie Wood Predicts U.S. Bitcoin Strategy Shift

In a recent podcast, ARK Invest’s Cathie Wood suggested that the U.S. might start buying Bitcoin to expand its strategic reserve, rather than relying on seized assets. She noted no formal market purchases have been made thus far.

The focus might shift, from only using seized Bitcoin to making direct market acquisitions. This could bolster the U.S. Bitcoin reserve, potentially targeting one million Bitcoins, although no official plans currently exist.

Bitcoin Markets Poised for Volatility on Government Moves

Did you know? El Salvador was the first nation to adopt Bitcoin as legal tender, regularly purchasing Bitcoin through government channels since 2021. This move has set a precedent for potential government cryptocurrency acquisitions globally.

According to CoinMarketCap, Bitcoin (BTC) holds a price of $90,896.69 with a robust market capitalization of 1,815,512,690,196.69 and dominance at 58.40%. Its 24-hour trading volume recorded 42,896,048,984.58 with a slight price decrease of 0.40%. Over 90 days, the asset has declined by 18.64%.

Coincu researchers indicate that if the U.S. government pursues Bitcoin purchases, the market may experience increased volatility. Regulatory landscapes could evolve, prompting a reassessment of digital currency classifications. Historical precedence suggests potential impacts on crypto market sentiment and valuation.