A Bloomberg Analyst Urges Investors to Lower Expectations for Trump’s Government to Buy Bitcoin in 2025
In addition to further legitimizing the asset, Bitcoin supporters have been advocating for one of the main reasons for the U.S. reserves, hoping that global powers will actively participate in the market and drive up demand prices.
President Donald Trump has established a Bitcoin reserve. It remains unclear whether the government will purchase any new assets through executive orders.
In context, the order established reserve funds held by the government from seizures, while directing the Secretary of the Treasury and the Secretary of Commerce to adopt a “budget-neutral strategy” to increase the cache. However, what these strategies will require is anyone’s guess.
Amid these lingering questions, a Bloomberg analyst urges investors to temper their expectations.
“Slim Chances”
“30%.”
According to a March 21 report by Bloomberg’s legal analyst, the likelihood of the U.S. government increasing its Bitcoin holdings by 2025 is minimal, as shared by Matt Sigel, Head of Digital Asset Research at Vaneck. The analyst emphasized that the government purchasing Bitcoin or any other crypto asset for its reserves in 2025 is quite unlikely. If President Trump were willing, he could utilize mechanisms such as exchanging stable funds to achieve this. This $39 billion fund is available to the Secretary of the Treasury for various purposes, including stabilizing the dollar or providing foreign aid.
The analyst also believes that any outcome through Congress is unlikely before at least the 2026 midterm elections.
This stance may be based on the slim Republican majority in Congress and anticipated opposition from Democrats. In a letter dated March 13, a group of House Democrats urged Secretary of the Treasury Scott Bessent to halt all efforts to establish Trump’s Bitcoin strategic reserves, criticizing it as benefiting donors.
However, not all analysts share the pessimism of Bloomberg’s legal analyst.
Vaneck Sees Higher Odds for Bitcoin
“I think we are close to 50-60%,”
asserted Matt Sigel of Vaneck in response to a question about the U.S. government’s chances of increasing its Bitcoin holdings set up by Trump by 2025.
Recent debates have even seen Bo Hines, the Executive Director of the President’s Crypto Working Group, continue to provide hope to Bitcoin supporters. In a recent interview with U.S. host Eleanor Terrett, Hines claimed that the government has numerous ideas to increase its Bitcoin reserves and pointed out that the “best ideas” would be implemented.
