Pentagon's Nuclear Shift Sparks Bitcoin Interest

The US Pentagon is rewriting its nuclear strategy to focus on regional conflicts involving China and Russia. As part of this shift, defense officials are considering shorter-range tactical nuclear weapons. This development has sparked renewed interest in Bitcoin, with some commentators suggesting that the cryptocurrency's decentralized structure could make it more valuable during sanctions or cyberattacks.

The Pentagon's new strategy is being drafted by Defense Department policy chief Elbridge Colby and seeks to give the US president more limited nuclear options during a crisis. This approach would mark a departure from decades of US doctrine built around the threat of a large retaliatory strike.

Separately, US military officials have been testing operational Bitcoin and exploring its potential uses in cybersecurity, communications, and value transfer. The Strategic Bitcoin Reserve, established by President Donald Trump's executive order in March 2025, holds forfeited BTC that cannot be sold. The reserve currently holds an estimated 200,000 BTC.