Bitcoin Advocates Push for US Strategic Reserve as Political Calculations Take Center Stage

Political Pressures May Drive US Bitcoin Purchases

The cryptocurrency industry is closely watching whether the United States will transition from simply holding confiscated Bitcoin to actively purchasing the digital asset, with prominent investor Cathie Wood suggesting political considerations could drive such a move. Wood, CEO of ARK Invest, stated in a recent Bitcoin Brainstorm podcast that she believes the US will begin buying Bitcoin to reach a target of one million coins, particularly since cryptocurrency has become a politically relevant topic ahead of the midterm elections ^[2].

President Donald Trump signed an executive order in March 2025 establishing a strategic Bitcoin reserve, but the initiative has remained largely symbolic. Treasury Secretary Howard Lutnick and Commerce Secretary Scott Bessent were tasked with developing budget-neutral strategies for acquiring additional Bitcoin that would not create additional costs for American taxpayers ^[2].

The current strategic reserve consists primarily of approximately 200,000 BTC obtained through government seizures, including those connected to the notorious Silk Road marketplace ^[2]. Wood explained that the original intention of Trump's policy was to create a digital equivalent to the gold reserve at Fort Knox, suggesting that merely holding confiscated coins would not be sufficient to achieve this goal ^[2].

The Lummis Plan and International Implications

A legislative proposal from Senator Cynthia Lummis envisions purchasing 200,000 BTC annually over five years, potentially financed through the sale of gold certificates ^[2]. The United States reportedly holds over 8,100 tons of gold currently valued at $1.16 trillion ^[2].

Galaxy CEO Mike Novogratz has suggested that implementing the Lummis plan would trigger a global domino effect, forcing other countries to follow suit. He views a Bitcoin price increase to $500,000 as a logical consequence of such a scenario ^[2]. Wood's analysis indicates that the cryptocurrency industry's financial support for political initiatives, including donations from companies like Coinbase, Tether, and Ripple, demonstrates the sector's growing influence ^[2].

Maelstrom CIO Arthur Hayes emphasized the economic focus of average voters, noting that cultural debates become irrelevant when people feel wealthy, with rising stock and cryptocurrency prices contributing to that sentiment ^[2].

Bold Predictions for Corporate Adoption

Samson Mow, founder of Jan3, has made several aggressive predictions for Bitcoin adoption in 2026, including the forecast that Tesla CEO Elon Musk will "go hard into BTC" ^[1]. This prediction comes despite Musk's previous environmental concerns about Bitcoin, which led Tesla to stop accepting Bitcoin payments in May 2021 and subsequently sell 75% of its Bitcoin holdings in July 2022 ^[1].

Mow also projected that Bitcoin's price could reach $1.33 million in 2026, representing an approximately 1,367% increase from its current price of $90,596 ^[1]. He previously told Magazine in June 2025 that reaching $1 million was "a given at this point, maybe this year, maybe next year" ^[1].

Mow has pointed to nation-state adoption as a major catalyst for exponential price increases. In September 2025, he suggested that an increasing number of countries are preparing to accelerate Bitcoin adoption, stating: "I think we're on the tail end of gradually, and we're at the beginning phases of suddenly" ^[1].

Industry Expectations Vary Widely

Not all cryptocurrency executives share such optimistic outlooks. Bitwise CIO Matt Hougan stated on December 28 that he anticipates a steady upward trend rather than spectacular returns, describing the outlook as "a 10-year grind upward of strong returns" with lower volatility ^[1].

These projections follow a year in which several high-profile predictions failed to materialize. BitMEX co-founder Arthur Hayes and BitMine chair Tom Lee both predicted Bitcoin would reach $250,000 by the end of 2025, even as recently as October, though the cryptocurrency reached an all-time high of $125,100 before falling short of those targets ^[1].