Is the government going to buy Bitcoin? Cathie Wood reveals that the US may initiate a strategy to purchase one million BTC as a reserve.

The idea of the U.S. government purchasing Bitcoin to establish a national reserve is moving from concept to reality. According to The Block, Cathie Wood, founder of ARK Invest, recently stated that the U.S. federal government may soon begin actual Bitcoin purchases to advance the “National Strategic Bitcoin Reserve” plan established earlier by the Trump administration through an executive order. This statement sends a key signal: the government is shifting from passive accumulation (mainly through asset confiscation) to active buying.

Current Status of the Government Reserve Plan

The plan was established early in Trump’s second term via an executive order, initially aiming to hold 1 million BTC. Currently, the reserve’s accumulation mainly relies on asset confiscation, but both scale and speed are relatively limited. Cathie Wood believes that as the Trump administration seeks to maintain political influence and as the crypto industry’s role in the election becomes more prominent, the government is likely to change strategies and initiate genuine market purchases.

Key Factors Driving Purchases

  • Maintaining political influence: attracting supporters through crypto policies
  • Voter considerations: crypto industry’s impact on election prospects
  • Strategic asset allocation: including BTC in the national reserve system
  • Policy consistency: fulfilling previous government commitments

Market Context and Potential Impact

The current Bitcoin market environment is relatively stable. BTC price fluctuates around $90,869, with a 24-hour decline of 0.45%, but has increased 2.64% over the past week. Bitcoin’s market capitalization stands at $1.81 trillion, accounting for 58.53% of the entire crypto market.

If the U.S. government actually initiates purchases, what does it mean? The most direct impact would be a significant increase in market demand. Buying 1 million BTC at current prices would require approximately $90.9 billion. Such a scale of purchase could exert sustained upward pressure on the market, especially if the government adopts a phased buying strategy. More profoundly, this marks Bitcoin’s transition from a speculative asset to a national strategic asset, potentially attracting more institutions and countries to follow suit.

Key issues to watch

  • When and how quickly will purchases begin
  • Whether purchases will be made through open markets or other channels
  • Actual impact on BTC prices and market liquidity
  • Reactions from other countries potentially following suit

Deeper Implications of Policy Signals

Cathie Wood’s remarks reflect the rapidly rising status of crypto assets within the U.S. policy ecosystem. From early regulatory suppression to now a strategic reserve plan, the speed of this shift has exceeded many expectations. This is not only a change in policy direction but also an institutional recognition of Bitcoin’s long-term value. When a government begins to include an asset in its national reserves, it signifies acknowledgment of its long-term worth.

It is worth noting that Cathie Wood, as founder of ARK Invest, has considerable influence in crypto and tech investment circles. Her expectations of government purchases are not baseless but are based on observations of political trends and policy developments.

Summary

The likelihood of the U.S. government shifting from passive accumulation to active Bitcoin purchases is increasing. Behind this shift are multiple factors including political interests, strategic considerations, and the rising status of crypto assets. For the market, government demand in the hundreds of billions of dollars could serve as a significant price support. But the key question remains: when will this plan turn from promise into action? The current BTC price near $90,000 may just be the beginning of this larger story. The next focus should be on whether the government’s purchases actually commence, and if so, the scale and pace of these purchases.

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