How $100 Billion Bitcoin Purchase by the US Could Send BTC Price to $500K?

Investors anticipate the Bitcoin price to hit $500k based on Coinbase executives' remarks on the US government’s $100 billion worth BTC plan.
By Pooja Khardia
Updated: 01 May, 2025 | 11:02:05 AM GMT
image showing Ohio's bill for Bitcoin tax exemptions

Highlights

  • Bitcoin price awaits further bullish catalysts, and the US government BTC buy could be that.
  • A Coinbase executive proposed that the US government could buy $100B BTC using the revalued gold reserve.
  • Experts believe a government's move could push BTC price to $500k.

The financial world is now focused on the Bitcoin price milestones, ever since it surpassed the $100k mark at the beginning of the year. As the attention shifts to this digital asset, its price, demand, and adoption are all growing. As a result, even US President Donald Trump signed an executive order for a strategic Bitcoin Reserve. Recently, the Coinbase executive pitched a plan for the US government to buy $100 billion of BTC in 2025. Let’s discuss the potential impact.

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Bitcoin Price News: Gold Reserve Revaluation Could Support $100 Billion Bitcoin Buying

Coinbase Asset Management President Sebastian Bea recently appeared on Frank Chaparro’s podcast, which was released on Wednesday, and discussed various points around Bitcoin. However, the highlight became the fact that the US government could buy $100B worth of BTC at the current Bitcoin price.

COINBASE JUST SAID THE USA LIKELY TO BUY $100 BILLION BITCOIN SOON 👀

IT’S COMING!!! 🚀 pic.twitter.com/XzIJrDsJfB

— Vivek⚡️ (@Vivek4real_) April 30, 2025

Although this was not a speculation, but rather a roadmap on how the government could get into Bitcoin buying. He disclosed that if the government reevaluated its gold held in Fort Knox at $42 an ounce to the current price, it could bring a gain of $900 billion to a trillion.

Out of this, the $100B could be easily allocated to the Bitcoin buying for Donald Trump’s US strategic Bitcoin reserve.

Today, the US government still values gold held in Fort Knox at $42 an ounce. If they mark that to current market prices, it would create a mark-to-market gain of roughly $900 billion. That $100 billion is a relatively small portion of the $900 billion gain, so it’s a feasible, significant position. This would be a huge change, showing the government’s commitment to Bitcoin as a strategic reserve.

He further claimed that the US government’s initiation could influence others to do the same, as they have been doing with gold. He cited the rising adoption and evolving demand, before revealing it’s hard not to be bullish on Bitcoin with all these.

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Why This Could Send Bitcoin Price to $500k?

The U.S government’s Bitcoin buy would bring strong institutional validation for the crypto token, affecting the Bitcoin price dynamic. BTC has been doing significantly well on its own, and the recent institutional adoption, especially with El Salvador, BlackRock, and MicroStrategy Bitcoin buying, and others, has fueled the demand further.

The government’s buy would push it to another level. The $100 billion buy would reduce the availability of BTC in the market, as there’s a limited supply. As a result, this could put upward pressure. More importantly, it would influence others to do the same in an ‘arms race’, generating positive momentum.

Although the trajectory is unpredictable, the BTC price would fuel immense upward pressure.

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Will BTC Price hit $500k?

Experts have been anticipating extreme bullish moves for this cryptocurrency over various parameters. Multiple Bitcoin price predictions, including Dave the Wave, see BTC hitting $200k by 2025 end, without government stimulus.

Interestingly, Ark Investment has redirected its BTC price target to $2.4B by 2030 based on active supply, bull case, and various assumptions. US government Bitcoin buying could be the catalyst to $500k, but there’s no confirmed trajectory.

BTC Price

Previously, Bitwise CIO anticipated the $500k target in case of any country’s strategic Bitcoin reserve. If the US did, this could likely happen.

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Frequently Asked Questions (FAQs)

1. What is the proposed $100 billion Bitcoin purchase roadmap to the US government?

A Coinbase executive suggests that the US government could buy $100 billion Bitcoin for a strategic reserve from US treasury gold revaluation.

2. What does it mean by Gold revaluation?

The US gold reserve at Fort Knox is $42 per ounce, but if the government reevaluated per current market price, it could generate up to a trillion gains.

3. Is the US government buying Bitcoin?

Officially, the government is not currently buying Bitcoin for the reserve, but it is proposed to do so.
Pooja Khardia
Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section. Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights. Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry. When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.
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