US Treasury Eyes $100B Bitcoin Splurge in 2025—Wall Street Braces for Volatility

The federal government might just become the ultimate crypto whale. Coinbase’s head of institutional coverage dropped a bombshell this week: Uncle Sam could gobble up $100 billion in Bitcoin before year-end.

Why the sudden appetite?
Rumor has it the Treasury’s exploring BTC as a strategic reserve asset—while traditional finance analysts clutch their pearls over ’unhedgeable risk.’

Market impact:
If executed, this move would instantly vaporize 5% of Bitcoin’s circulating supply. Exchanges are already recalculating liquidity models, and goldbugs are having conniptions.

One hedge fund manager quipped: ’Nothing says ’sound monetary policy’ like YOLO-ing tax dollars into a 24/7 volatility machine.’ Meanwhile, Bitcoin just hit $120K on the speculation alone—proving once again that governments move markets... even when they’re just *thinking* about moving markets.

From Mark-To-Market To Bitcoin

Bea’s central contention is that Congress could pass a short bill amending 31 U.S.C. § 5117, re-strike higher-denomination gold certificates, and credit the revaluation gain to a sovereign-wealth-style account at Treasury in line with US president Donald Trump’s executive order for a strategic Bitcoin reserve—without adding to headline federal debt.

“When the revaluation occurs, that creates a $900 billion mark-to-market gain, which the Treasury could then take […] in a budget-neutral manner to go and buy a variety of things. We think probably including Bitcoin,” he said.

His arithmetic mirrors Senator Cynthia Lummis’ BITCOIN Act, introduced earlier this year, which directs Treasury to acquire one million BTC (around $100 billion at prevailing prices) over five years while remaining deficit neutral.

Bea argued that a US purchase of that size—about 5.5% of Bitcoin’s $1.8 trillion market capitalization—would almost certainly prompt other states to respond. “It’s hard to see a situation where other governments don’t feel compelled in some way to measure up,” he said, adding that the dynamic could resemble the “competitive situation” in gold, where central banks bought a record 1,037 tonnes last year.

Central bank demand for gold is motivated by “the overall level of debt that they see and the concerns around the global economy,” Bea said. “So does it seem so crazy to maybe save in some Bitcoin at, say, a ninety-to-ten ratio, given the whole world is going online?”

How Soon Is ‘Sooner Than Expected’?

Bea would not commit to a precise timetable but told Chaparro that the legal change “could be this year.” He suggested the trigger could come from legislators seeking an offset for new outlays—or from Treasury itself if political momentum builds behind the Lummis bill.

“As soon as you understand the pipes of how banks and how the government works,” he concluded, “you realize they can revalue gold and buy Bitcoin and still be budget neutral. And once that’s on the table, it’s really just a matter of political will.”

At press time, BTC traded at $93,422.