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VanEck has announced the Total Amount of Bitcoin the United States States can Buy! What Happens to BTC Price if They Buy it All?
According to a new research by the investment firm VanEck, while the US federal government discusses creating a Bitcoin strategic reserve, 21 states have already started taking steps to create their own reserves.
A report analyzing legislative proposals in various states predicts that state-sponsored Bitcoin purchases could reach up to 25 billion dollars. Analysts Nathan Frankovitz and Matthew Sigel described this figure as both "optimistic and conservative," noting that while the likelihood of these proposals passing is low, their estimates are based on the upper limits of each proposal. Additionally, VanEck allocated zero allocation to those states that have not yet disclosed how much Bitcoin they plan to purchase.
Analysis does not take into account retirement fund allocations already made in states such as Michigan and Wisconsin, which have previously included Bitcoin in their investment strategies.
If these purchases were to occur, they could have a profound impact on the market trajectory of Bitcoin. Similar to MicroStrategy's aggressive Bitcoin accumulation, which currently stands at approximately 31 billion dollars, government purchases could propel Bitcoin's price to all-time highs.
The increasing interest in Bitcoin reserves is not limited to the United States. Experts indicate that other countries, especially those looking to diversify their reserves or protect against geopolitical risks, may soon follow the same path.
Galaxy Research had previously reported that competition between country groups, especially unconnected states, those with large sovereign wealth funds, and even those hostile to the US, would lead to the adoption of Bitcoin mining or other ways of acquiring Bitcoin strategies.
Bitcoin assets for states and the federal government could offer a diversification beyond traditional US Treasury assets. Advocates for Bitcoin argue that providing a Bitcoin reserve could position governments ahead of the curve if cryptocurrency reserves become a standard financial strategy.
VanEck's analysis ranks the following 21 states investigating Bitcoin investments in order of potential allocation and the amount of BTC they could obtain: