US Government Considers Establishing Strategic Bitcoin Reserve with Potential 1 Million BTC Purchase, Driving Institutional Crypto Adoption
US lawmakers, led by Senator Cynthia Lummis, are advancing the ’BITCOIN Act,’ a legislative proposal that could see the US government acquire up to 1 million Bitcoin (BTC)—about 5% of total supply—over five years, creating a national strategic Bitcoin reserve comparable to gold holdings. Support from former President Donald Trump is boosting the initiative, with an executive order already issued to establish a reserve using seized crypto assets. However, actual large-scale buying would require funding and coordination from federal agencies such as the Treasury or Commerce Department, and no final decision or funding has been confirmed. Industry leaders are suggesting innovative funding methods like ’BitBonds,’ which could potentially save the government significant interest costs and accelerate accumulation. As of the latest reports during the Bitcoin 2025 conference, presidential approval is secured if agencies gather necessary resources. News of such an unprecedented buy, especially at current BTC levels near $107,915, has heightened crypto market attention, as institutional demand from the US government could drive BTC prices higher and cement its position as a strategic asset. Crypto traders should closely monitor developments around the $106,000–$111,000 range and watch for legislative progress, as any confirmed purchase or passage of the act would likely trigger a strong bullish trend for Bitcoin.
Bullish
The proposal for the US government to establish a large-scale Bitcoin reserve via the acquisition of up to 1 million BTC represents significant institutional adoption that would immediately signal high confidence in Bitcoin’s strategic and fiscal value. The involvement of high-level officials and the discussion of innovative funding mechanisms signal growing policy support. Even though the purchase is not finalized and depends on further congressional and agency action, the market’s anticipation of such a large buy-side demand could create sustained upward price pressure, particularly with BTC already trading near all-time highs. Historically, news of institutional adoption—especially by nation-states—has driven bullish sentiment and liquidity influxes into the market. The mention of key price levels and monitoring by large investors also indicates traders are already positioning for potential upside. If any concrete steps toward these purchases occur, a sharp and likely prolonged bullish rally should be expected, both in the short- and long-term.