Fred Krueger, a former quantitative analyst from Wall Street, has made an intriguing forecast that the United States may begin purchasing Bitcoin using funds generated from tariffs.
Howard Lutnick, the US Secretary of Commerce, previously indicated that tariff revenues could reach an astonishing $50 billion each month. At current market values, this would equate to approximately 400,000 Bitcoins in just the first month.
For context, around 19,000 new Bitcoins are mined daily.
Krueger believes this scenario could disrupt traditional power dynamics in markets since it deviates from expected behaviors typically seen in trading environments.
The usual balance of supply and demand would likely be drastically altered by intense buying activity driven by government actions.
Will the US Government Actually Purchase Bitcoin?
Naturally, the notion that the US might allocate such vast amounts for Bitcoin acquisitions seems far-fetched at first glance.
In March of this year, however, the US government took steps towards establishing a strategic reserve of Bitcoin formed through confiscated assets.
As reported by U.Today, Treasury Secretary Scott Bessent has made some inconsistent remarks regarding potential future purchases of Bitcoin.
Initially hinting at possible acquisitions down the line, he later retracted his statement asserting that no further coins would be purchased by the government. Yet again on social media platform X (formerly Twitter), he seemed to change his stance once more by suggesting that there might be “budget-neutral” options available for acquiring additional Bitcoins.