The CEO of one of the world's largest cryptocurrency exchanges has cast doubt on the likelihood of the United States government purchasing Bitcoin for its Strategic Bitcoin Reserve, saying that funding rules and political constraints make active government buying unlikely under the Trump administration.
Gracy Chen, CEO of Bitget, said that while the U.S. government has established a Strategic Bitcoin Reserve through executive order, the actual purchase of additional Bitcoin for the reserve is unlikely due to funding constraints and political considerations. Chen also said she expects Bitcoin to remain near current levels through the end of 2026, a more conservative forecast than some other market analysts.
The Strategic Bitcoin Reserve
The U.S. Strategic Bitcoin Reserve was established by executive order earlier in 2026, creating a framework for the government to hold Bitcoin as a strategic asset. The reserve is currently funded by Bitcoin that has been seized through law enforcement actions, rather than through active market purchases. President Trump has signaled that the government could buy Bitcoin at a sizeable scale, but the executive order did not include funding for additional purchases.
Chen's assessment highlights the gap between the political rhetoric around the Bitcoin reserve and the practical reality of government Bitcoin purchases. While the establishment of the reserve was a significant milestone for the crypto industry, actually funding additional purchases would require congressional approval, which is politically challenging. The government would need to either redirect existing funds or allocate new funding for Bitcoin purchases, both of which face significant political obstacles. For more on government crypto policy, see our coverage of Trump's crypto policy.
Funding Constraints
The primary barrier to government Bitcoin purchases is funding. The U.S. government operates under a budget process that requires congressional approval for spending, and there is no current allocation for Bitcoin purchases. While the government could potentially use seized Bitcoin to fund the reserve, active market purchases would require new funding.
The funding constraints are compounded by political considerations. While the Trump administration has been supportive of crypto, Congress is divided on the issue, and allocating taxpayer funds for Bitcoin purchases could face significant opposition. The CLARITY Act, which is currently stalled in the Senate, does not include provisions for government Bitcoin purchases, and there is no standalone legislation currently moving through Congress that would fund such purchases. For more on crypto legislation, see our coverage of CLARITY Act political dynamics.
Chen's Price Forecast
In addition to her assessment of the Bitcoin reserve, Chen offered a price forecast for Bitcoin, saying she expects the cryptocurrency to remain near current levels through the end of 2026. This is a more conservative forecast than those of many other market analysts, who have predicted that Bitcoin could reach $100,000 or higher by year-end.
Chen's conservative forecast may reflect concerns about the sustainability of the current rally. Bitcoin has gained approximately 23% in the past week, driven by a combination of ETF inflows, short liquidations, and regulatory optimism. While the rally has been impressive, Chen may be cautious about extrapolating short-term gains into long-term price predictions. Her forecast also takes into account the regulatory uncertainty that remains, particularly around the CLARITY Act vote scheduled for September 15. For more on Bitcoin price forecasts, see our coverage of Coinbase CEO's bull cycle prediction.
What This Means for the Market
Chen's assessment of the Bitcoin reserve and her conservative price forecast could temper some of the market's bullish sentiment. The prospect of government Bitcoin purchases has been a bullish narrative for the market, and the suggestion that such purchases are unlikely could reduce expectations for further price appreciation. However, the market has multiple bullish catalysts, including ETF inflows, regulatory progress, and the short squeeze dynamic, which could continue to drive prices even without government purchases.
For the broader crypto industry, Chen's comments highlight the importance of managing expectations around government crypto policy. While the establishment of the Bitcoin reserve was a significant milestone, the practical implementation of additional government purchases faces significant hurdles. The industry should focus on other catalysts for growth, including institutional adoption, regulatory clarity, and technological innovation, rather than relying on government purchases to drive the market. For more on market catalysts, read our coverage of Ray Dalio's Bitcoin endorsement.
