By Michael Scott
Market analytic firm CryptoQuant chief warns crypto holders that US motives to create Bitcoin standards will likely vary from their expectations.
A recent X post by CryptoQuant’s Ki Young Ju indicates that for the US to prioritize the BTC standards would involve threats from global economic dominance.
Young Ju admits personally supporting the decision to have Bitcoin Standard. Nonetheless, he doubts whether the US can adopt BTC as a strategic asset during the economic growth phase as others stagnate.
US Motives Differ From Bitcoiners
The analytic expert indicates that for the idea to garner serious momentum, the US should experience threats to its global economic dominance. Such conductions hardly exist as the existing market sentiment is in support of sustained US supremacy.
The Bitcoin Standard also has a book by Saifedean Ammous that elaborates on how the government could utilize Bitcoin as a reserve asset.
Per Young Ju’s account, the possibility of the government establishing the BTC standard would have unique intentions. Such is bound to contrast with the intentions of the Bitcoin bulls and investors.
The CryptoQuant head considers the US government could buy Bitcoin as part of its economic leverage and risk management. The notion of acquiring Bitcoin in preparation for the Bitcoin Standard or as a tool to shield the dollar system is distant from the present reality.
Young Ju indicates that with global capital still flowing into the US, many are convinced that dollar dominance remains secure. The CEO concluded by acknowledging that if Donald Trump becomes successful as he returns to the Oval Office, he will bolster the US dollar’s strength. As such, he could ditch his pro-Bitcoin stance.
He adds that Trump’s success in illustrating the US economic resilience would reinforce the US dollar supremacy, thus boosting his administration’s approval ratings. Such a possibility makes it uncertain whether Trump would sustain the strong pro-BTC stance he portrayed during the campaign.
Young Ju warns that Trump could quickly retract from the Bitcoin advocacy. He considers it possible by citing changing priorities without alienating the voter base.
The CryptoQuant warnings come after Federal Reserve chair Jerome Powell indicated they are legally prohibited from holding BTC as a reserve asset. The remarks triggered a significant dip in the Bitcoin price.
US Not Buying BTC in 2025
The research team within Galaxy Digital indicates that the US government could refrain from purchasing Bitcoin (BTC) next year. Instead, it will prioritize managing the Bitcoin holdings as discussions regarding its Bitcoin reserve policy progress.
Alex Thorn, the head researcher, entertains other market observers’ view that discussions are necessary within the departments involved. He elaborated in an X post that the US will establish a stockpile using the coins already held. However, various departments and agencies will participate in examining the Bitcoin reserve policy.
US BTC Reserve Policy?
Recent data by Spot on Chain reveals the US currently holds over 183,850 BTC worth $17.36B. The Bitcoin is held across 36 addresses.
Thorn’s statement emerges following Wyoming Senator Cynthia Lummis’ draft, whose approval could bolster the BTC reserve policy. The enactment of the Bitcoin Act 2024 would facilitate the US Treasury acquiring 200K bitcoin annually to accumulate 1M BTC in the five-year timeline. The Lummis draft mandates that the Treasury hold the BTC for at least 20 years.
Galaxy analyst pseudonymously known as ‘JW’ suggests that when the US develops a stronger BTC stance, it could compel other nations to replicate the approach.
Will Others Adopt BTC?
Fierce competition among the states, particularly with adversarial positions and substantial sovereign wealth funds, could heighten efforts towards mining and acquisition of the premier crypto.
Young Ju considers the creation of a Bitcoin strategic asset as a vote of no confidence in the US dollar. Shifting to the Bitcoin standard would prompt other countries to view it as a decline in faith in the dollar-based monetary system.
While Russia, Brazil, and Poland have expressed interest in the Bitcoin reserve, others are hesitant to embrace the strategy owing to the absence of clarity on US policy. Prime Minister Shigeru Ishiba indicated that the government hardly understands the global BTC reserve trends.