US Considers Budget-Neutral Bitcoin Purchases Amid Record ETF Inflows and New BTC Highs
The US government is evaluating the possibility of increasing its national Bitcoin reserves through a budget-neutral approach, as highlighted by White House AI and crypto advisor David Sacks. This strategy would involve reallocating funds from underused government projects, avoiding any new taxes or added national debt, and would require approval from the Treasury or Commerce Secretary. The potential move comes as US-listed spot Bitcoin ETFs, particularly BlackRock’s IBIT, witnessed record inflows of over $5.7 billion in May 2025, driving Bitcoin to a new all-time high above $110,000. While institutional investment momentum remains robust, retail participation is lagging, with smaller transfer volumes holding steady. Simultaneously, long-term Bitcoin holders moved more than $4 billion in May, indicating profit-taking or portfolio adjustment. The US government already possesses around 198,012 BTC (over $21 billion), largely acquired from asset seizures. Increased government and institutional engagement points to a shift toward greater Bitcoin adoption in the financial sector, potentially influencing market sentiment and price trends.
Bullish
Government consideration of buying more Bitcoin, especially through a budget-neutral framework, signals increased institutional and official confidence in Bitcoin. Coupled with record ETF inflows and fresh price highs, this stronger engagement from both institutional and governmental actors could stimulate further buying interest, support higher price levels, and enhance market stability—at least in the short to medium term. Historical precedent suggests such developments typically boost market sentiment, attracting new investors and reinforcing bullish momentum. However, actual impact will depend on formal government action and potential market front-running.