US Government's Strategic Bitcoin Reserve Not Expected to Expand, Says Bitget CEO

Gracy Chen, CEO of cryptocurrency exchange Bitget, has stated that the US government is unlikely to purchase additional Bitcoin for its Strategic Bitcoin Reserve (SBR) during the current administration. This assertion comes despite President Trump's pro-crypto stance. The SBR, established by an executive order on March 6, 2025, currently holds approximately 198,000 BTC, valued at around $17.3 billion, which constitutes about 1% of Bitcoin's total circulating supply.

Chen emphasized that the SBR is limited to Bitcoin acquired through civil and criminal forfeiture, explicitly prohibiting new purchases using taxpayer funds. This legal framework means that the government cannot actively buy Bitcoin from the market without new legislation, which is seen as unlikely given the current political climate. The reserve is designed to hold seized assets rather than facilitate new acquisitions, contrasting with the active accumulation strategies seen in countries like El Salvador and Bhutan.

The implications of this structure are significant for market dynamics. While the SBR removes the potential for government sell-offs, which could have added supply pressure to the market, it does not create new demand. As a result, market expectations should shift from anticipating government purchases to focusing on other factors influencing Bitcoin's price, such as institutional adoption and macroeconomic conditions. Chen noted that the likelihood of Congress authorizing Bitcoin purchases remains low, given the challenges of achieving bipartisan support for such a volatile asset.

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Source: KLEA News