TL;DR
- Cathie Wood said the U.S. government could buy Bitcoin on the open market to add BTC to its national reserve and push prices higher.
- The March 2025 executive order created a U.S. Strategic Bitcoin Reserve using seized assets, a structure that, according to Wood, is not sufficient to build a large-scale reserve.
- The fixed supply of 21 million BTC limits available liquidity, meaning gradual purchases by a sovereign state like the United States would generate strong upward price pressure.
Cathie Wood said the U.S. government could begin buying Bitcoin on the open market to incorporate it into its national reserves. The CEO of ARK Invest argued that, if this happens, the impact on price would be significant and could drive BTC up by multiples from current levels.
Wood based her argument on the executive order signed in March 2025 that created a Strategic Bitcoin Reserve in the United States. That reserve was built using confiscated and forfeited cryptocurrencies and did not rely on direct market purchases. In her view, this move confirmed that the state recognizes Bitcoin as a strategic asset, on the same level as gold or foreign currency reserves.
The Key Lies in Bitcoin’s Supply Structure
According to her analysis, a reserve built solely with seized BTC has a very clear limitation. If the government aims to build a meaningful allocation, it would need to turn to the market. Wood said a sizable reserve cannot be sustained using only confiscated assets and that direct purchases would be the next step if the reserve policy moves forward.
The potential impact is explained by BTC’s supply structure. The maximum supply is fixed at 21 million units and cannot expand in response to rising demand. Wood argued that even gradual purchases by a sovereign with the financial capacity of the United States would reduce available liquidity and push prices higher due to a lack of sellers.
A Long-Term Demand Base
This scenario would add to an institutional demand base that is already showing consistent signals. Analysts at JPMorgan noted that spot Bitcoin ETFs and other institutional vehicles are forming a long-term demand foundation, despite short-term volatility. In that context, a potential state-level buying policy would introduce a new source of demand, distinct in both scale and time horizon.
Wood reiterated her long-term outlook and maintained her price target above $1 million per Bitcoin. She acknowledged that direct purchases by the U.S. government remain a future possibility rather than a decision that has already been explicitly made. Even so, she said the legal and political framework is already in place and that, if BTC maintains its role as a strategic asset, sovereign purchases would shift from a theoretical option to an operational decision.
