This Investor Thinks the United States Could Start Buying Bitcoin in 2026

Cathie Wood, CEO and Chief Investment Officer of ARK Invest, has predicted that the U.S. government could begin purchasing Bitcoin in 2026 to build a National Strategic Bitcoin Reserve. Wood cited the administration's political incentives ahead of the 2026 midterms and the need to avoid becoming a 'lame duck' president. The reserve was originally established by executive order in early 2025 with the goal of accumulating one million bitcoins.

The U.S. Treasury currently holds 198,000 BTC, largely seized from criminal activities, but has been hesitant to expand its holdings beyond these acquisitions. Wood argues that the original intent was for the government to build a reserve of one million bitcoins, and she believes this will be fulfilled in 2026.

President Donald Trump has been a vocal supporter of cryptocurrency initiatives and signed an executive order directing the government to preserve seized Bitcoin for a strategic reserve. However, there have been reports that some of these funds may have already been sold, raising concerns about compliance.

Why the Move Happened

Wood attributes the potential shift in policy to both economic and political factors. The administration seeks to leverage high-growth sectors like blockchain technology to demonstrate innovation and maintain support from crypto voters who were influential in the 2024 election.

Additionally, Wood highlights the importance of the GENIUS Act, which provides the legal framework for the Treasury to manage a national crypto stockpile. This act is expected to streamline the process of acquiring and managing digital assets at the federal level.

How Markets Responded

Market analysts have been closely watching how U.S. government involvement in Bitcoin could affect its price and liquidity. Wood maintains a long-term price target of up to $1.2 million for Bitcoin, even after trimming earlier projections due to the rise of stablecoins.

The potential for large-scale U.S. government purchases could influence market dynamics, particularly if the administration moves quickly to build its strategic reserve. Institutional investors have also been seen stepping in to reduce market volatility, especially as Bitcoin appears at a low point in its four-year cycle.

What Analysts Are Watching

Analysts are also paying attention to state-level actions, as several states have begun developing their own crypto reserves. Florida, Texas, and Wyoming have passed or proposed legislation to create state-backed digital asset reserves, with Wyoming already issuing a state-backed stablecoin.

The U.S. government's involvement in cryptocurrency is also being compared to global trends. South Korea, for example, has ruled that exchange-held Bitcoin can be seized, and its financial regulators are considering measures similar to those in the U.S. and EU.

Investor groups like Stand With Crypto are also pushing for federal legislation that would formalize the regulatory framework for digital assets. Their efforts are expected to shape the political landscape heading into the 2026 midterms.

President Trump has emphasized the importance of winning the 2026 midterms, citing the risk of impeachment if Republicans lose control of Congress. This has added political pressure to advance pro-crypto initiatives and align them with broader economic strategies.