Bitcoin News Today: U.S. Treasuries Stash Bitcoin as "Digital Gold" Amid Global Divide

The U.S. government's strategic pivot toward Bitcoin has intensified speculation about the cryptocurrency's long-term value, with some analysts suggesting the move could push Bitcoin closer to $400,000. President Donald Trump's March 2025 executive order to establish a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile has catalyzed legislative and fiscal initiatives aimed at centralizing and expanding government-held digital assets. The Treasury Department, under Secretary Scott Bessent, is now mandated to report on the feasibility of managing these reserves, including how Bitcoin and other digital assets would be accounted for on the federal balance sheet and secured against cyber threats Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile^[1].

A key funding mechanism for this reserve emerged in September 2025 with the introduction of the BITCOIN Act by Senator Cynthia Lummis. The bill proposes leveraging unrealized gains from the U.S. gold reserves-valued at $42.22 per ounce by law but trading near $3,300 per ounce-to finance the purchase of 1 million BTC over five years Senator Lummis’s Plan to Turn Federal Gold Profits into BTC^[5]. This approach, described as "budget-neutral," avoids new taxes or borrowing while tapping into a $747.3 billion revaluation surplus. By redirecting these gains, the U.S. could significantly bolster its Bitcoin holdings, currently estimated at 198,000 BTC (worth $22.4 billion), without increasing the national debt Interpretation of Lummis's new Bitcoin bill: $747.3 billion in gold to …^[6].

The Treasury's existing Bitcoin holdings, primarily acquired through law enforcement seizures, are already being centralized under the Strategic Bitcoin Reserve. However, only 15% of these seized assets are legally forfeited and eligible for use, creating bottlenecks in reserve growth Senator Lummis Proposes Gold Revaluation to Fund …^[7]. The BITCOIN Act aims to circumvent these constraints by enabling purchases funded through gold revaluation. If enacted, the Treasury would be required to buy 200,000 BTC annually, with the assets held for at least 20 years. This long-term commitment aligns with Trump's vision of Bitcoin as "digital gold," emphasizing its scarcity and potential as a hedge against inflation .

Market analysts have linked these developments to potential price surges. A 2025 analysis of the BITCOIN Act suggested that mandatory purchases could drive Bitcoin's price to $91,300–$110,000 in the short term, with long-term projections exceeding $200,000 due to sustained demand and macroeconomic factors Interpretation of Lummis's new Bitcoin bill: $747.3 billion in gold to …^[6]. The U.S. is not alone in this trend; global governments collectively hold over 517,000 BTC, with China, the U.K., and Ukraine among the top holders The Global Bitcoin Reserve Race: Who Will Follow the US?^[4]. However, the U.S. initiative represents the first major attempt to institutionalize Bitcoin as a reserve asset, potentially reshaping global financial dynamics.

International reactions have been mixed. While countries like Belarus and Bhutan have expressed interest in Bitcoin mining and reserves, major economies like the European Union and Switzerland have criticized the U.S. move, citing concerns over financial stability and volatility The Global Bitcoin Reserve Race: Who Will Follow the US?^[4]. The Czech Republic, however, has signaled openness to allocating up to 5% of its $146 billion reserves to Bitcoin The Global Bitcoin Reserve Race: Who Will Follow the US?^[4]. These divergent stances highlight the geopolitical implications of the U.S. strategy, which could accelerate Bitcoin's adoption as a legitimate reserve asset.

The BITCOIN Act and associated executive orders underscore a broader shift in U.S. policy toward embracing digital assets. By treating Bitcoin as a strategic resource akin to gold, the administration aims to strengthen economic competitiveness and position the U.S. as a global leader in crypto innovation. As the Treasury prepares its 90-day feasibility report under House Bill H.R. 5166, the interplay between gold revaluation, Bitcoin demand, and regulatory clarity will be critical in determining the success of this ambitious initiative.