Cathie Wood, CEO of ARK Invest, has floated a striking scenario: the U.S. government may eventually begin actively buying Bitcoin on the open market to build out its national reserves. If that happens, Wood believes the impact on price could be dramatic, potentially driving Bitcoin up by “many multiples.”
Why Wood Thinks U.S. Bitcoin Buying Is Plausible
In a recent interview, Wood pointed to the March 2025 executive order that formally established a U.S. Strategic Bitcoin Reserve using confiscated and forfeited digital assets. While the initial reserve did not involve market purchases, she argues the order marked a critical shift in how Bitcoin is viewed by policymakers.
According to Wood, the executive action effectively acknowledged Bitcoin as a strategic national asset, placing it in the same conceptual category as gold or foreign currency reserves. From there, she sees a logical next step: once Bitcoin is treated as a reserve asset, policymakers could eventually decide that relying only on seized coins is insufficient.
“If the U.S. government wants a meaningful allocation,” Wood suggested, “it may have no choice but to buy Bitcoin in the market.”
Supply Constraints and Price Impact
Wood’s bullish thesis rests heavily on Bitcoin’s fixed supply, capped at 21 million coins. Unlike fiat currencies or even gold, Bitcoin cannot be expanded in response to demand. In her view, sustained purchases by a sovereign entity, especially one with the financial firepower of the United States, would collide directly with that supply constraint.
The result, she argues, would be outsized price appreciation. Even modest, ongoing government accumulation could overwhelm available liquidity, forcing prices higher as sellers dry up.
Institutional Momentum Builds
Wood’s outlook aligns with broader institutional narratives taking shape across Wall Street. Analysts at JPMorgan have recently noted that while short-term volatility remains, structural demand from spot Bitcoin ETFs and other institutional vehicles may be forming a durable long-term base.
In that context, potential government buying would represent an entirely new category of demand, one that markets have not yet priced in.
Long-Term Conviction Remains Intact
Wood has long been one of Bitcoin’s most vocal institutional advocates. She reiterated her long-term price target of over $1 million per coin, arguing that government participation would only strengthen the case for such valuations over time.
While she acknowledged that the idea of direct U.S. purchases remains speculative, Wood emphasized that the groundwork has already been laid. If Bitcoin continues to entrench itself as a strategic asset, she believes sovereign accumulation may be a question of when, not if.
