US Government Unlikely to Buy Bitcoin for Strategic Reserve

The US Strategic Bitcoin Reserve has been touted as a game-changer for crypto markets, but according to Bitget CEO Gracy Chen, it's unlikely to make any new purchases before Trump leaves office. The reserve holds approximately 198,000 BTC, valued at around $17.3 billion, but its holdings are limited to Bitcoin seized through civil and criminal forfeiture proceedings.

The executive order establishing the reserve explicitly prohibits new acquisitions using taxpayer funds and bars any sales of the holdings. This means the government will hold onto what it has, rather than actively buying more Bitcoin.

Chen's assessment cuts through the marketing hype surrounding the Strategic Bitcoin Reserve, which was designed to generate headlines and signal openness to digital assets. The legal architecture of the reserve simply doesn't support sovereign accumulation, as investors had hoped for when the reserve was first announced.