Sovereign ‘Gold Rush’ for Bitcoin Imminent: Expert Predicts Global Race for BTC Reserves

The U.S. Bitcoin adoption is poised to ignite a global race for portions of Bitcoin’s limited supply, triggering what could be described as a sovereign ‘gold rush’. According to Alessio Quaglini, CEO of Hex Trust, the surge in Bitcoin’s price past the $100,000 mark signifies the onset of the cryptocurrency’s institutional phase. This phase, Quaglini predicts, will be driven by increasing demand from sovereign nations looking to secure a share of Bitcoin’s 21 million supply—an amount that is capped and becoming increasingly scarce.

The Institutional Phase of Bitcoin Adoption

In an interview with CNBC, Quaglini explained that Bitcoin’s price surge past the $100,000 psychological threshold represents a transition point. After Bitcoin’s technological advancements and the retail boom driven by the establishment of major cryptocurrency exchanges, institutional demand is now the next logical step. According to Quaglini, the widespread adoption of Bitcoin by U.S. institutions is set to trigger a domino effect worldwide.

The growing acceptance of Bitcoin in the U.S. would likely lead other countries to follow suit, triggering fierce competition among sovereign nations to acquire a piece of the $2 trillion cryptocurrency. As governments start to recognize Bitcoin’s potential as a store of value and a hedge against inflation, the demand for the asset is expected to skyrocket.

The Bitcoin Reserve Race

One of the most striking aspects of this development is the fact that a substantial portion of Bitcoin’s circulating supply is currently inactive. 75% of Bitcoin’s circulating supply is held by long-term investors, signaling that most buyers are not looking to sell in the near term. This creates a scenario where the available supply of Bitcoin is limited, and governments will increasingly find themselves in a race to secure their reserves of the cryptocurrency. As Quaglini put it, this scarcity could lead to a “fear of missing out” (FOMO) effect among nations.

The global Bitcoin reserve race has already begun to take shape, with several nations recognizing the strategic importance of holding Bitcoin in their national treasuries. Quaglini’s comments align with sentiments from other industry leaders who believe that U.S. Bitcoin adoption has removed much of the reputational risk that once surrounded the cryptocurrency.

Global Moves Toward Bitcoin Reserves

Countries have already begun exploring the idea of Bitcoin as a national asset. Brazil, for instance, is taking steps toward integrating Bitcoin into its foreign investment treasury. A proposal from Eros Biondini, a member of the Chamber of Deputies, suggested that Brazil allocate 5% of its national foreign investment reserves to Bitcoin.

In Russia, President Vladimir Putin described Bitcoin as unstoppable and censorship-resistant, and the country has already moved to legalize Bitcoin as property while establishing regulations for crypto mining.

In Poland, presidential candidate Sławomir Mentzen has pledged to create a national Bitcoin reserve if elected, further signaling that sovereign nations are increasingly seeing Bitcoin as a strategic asset.

U.S. States and Cities Moving Toward BTC Reserves

The U.S. is also playing a key role in this Bitcoin “gold rush.” Several U.S. states are advancing BTC reserve laws, and some local governments are taking action on their own. Dennis Porter, founder of the Satoshi Act Fund, pointed out that over 10 U.S. states are moving toward creating Bitcoin reserve policies. In addition, Vancouver Mayor Ken Shim has proposed a plan for the city to purchase Bitcoin with its treasury funds.

Looking Toward 2025 and Beyond

Quaglini predicts that the Bitcoin gold rush is just getting started and that its effects will be felt in earnest before 2025. As sovereign governments, including those in Brazil, Russia, Poland, and the U.S., begin to officially adopt Bitcoin and integrate it into their financial strategies, the competition for Bitcoin reserves will only intensify.

The potential for a sovereign gold rush for Bitcoin is growing, and as Bitcoin becomes increasingly integrated into national reserves, its price could soar even higher. With institutional demand and sovereign nations set to compete for a piece of Bitcoin’s finite supply, the coming years could see the cryptocurrency take center stage as a global financial asset. As countries move to secure their positions, Bitcoin may very well cement its status as the digital gold of the future.