Key Notes
- The US government may explore Bitcoin purchases under a budget-neutral mandate.
- Bitcoin ETFs have recorded over $5.7 billion in inflows in May, the best performance since November 2024.
- Despite record highs, retail investors remain largely inactive, and long-term holders are increasing BTC outflows.
David Sacks, the White House’s designated crypto and AI czar , revealed during a fireside chat at the Bitcoin 2025 conference that the US government could explore additional Bitcoin BTC $96 611 24h volatility: 2.1% Market cap: $1.92 T Vol. 24h: $29.09 B purchases, provided the acquisitions remain budget-neutral.
Sacks, speaking to Gemini’s Cameron and Tyler Winklevoss on May 27, acknowledged that while there’s no formal commitment yet, the executive framework is already in place.
He pointed to a March 6 executive order that allows the government to retain and potentially acquire Bitcoin via civil or criminal asset forfeitures. More importantly, the same directive permits proactive purchasing, if funding doesn’t come from new taxes or increase the national debt.
For any such move to materialize, Sacks noted that either the Treasury Secretary or the Commerce Secretary would need to approve and structure the purchase by reallocating existing government funds.
“If they can figure out how to fund it, they actually do have presidential authorization,” he emphasized.
The US currently holds about 198,012 BTC, valued at over $21 billion.
Bitcoin ETFs Attract Billions as Market Momentum Builds
Meanwhile, the 11 US-listed spot Bitcoin ETFs have seen a combined inflow of $5.77 billion this month, marking their best monthly performance since November, as per data from SoSoValue . Investor interest has largely focused on directional bets, but demand for arbitrage-based strategies has also climbed in tandem.
Net inflows have dominated ETF activity, with only four days of outflows since mid-April. BlackRock’s IBIT has emerged as the top performer , coinciding with Bitcoin’s new all-time high above $110,000.
Retail Activity Still Dormant Despite Record Prices
Despite Bitcoin’s record-setting rally in Q2 2025, retail investors have been notably absent from the party. Analyst burakkesmeci on CryptoQuant noted that BTC transfer volumes in the $0-$10K bracket, usually associated with retail activity, remain stagnant.
While institutional demand propels prices upward, the grassroots retail momentum that historically sustains bull markets is yet to arrive. Previous cycles show that institutional buying often begins rallies, but retail involvement is essential for prolonged growth.
If retail participants re-enter over the next few weeks, this rally could still have significant legs. For now, however, retail caution may be keeping some of the froth at bay.
Long-Term Bitcoin Holders Break Silence
Adding complexity to the current market narrative is a renewed wave of selling from long-term Bitcoin holders. According to on-chain data from Glassnode, BTC holders aged between one and five years have collectively moved over $4.02 billion worth of Bitcoin in May, the fifth-largest outflow spike of the cycle.
Spending by older $BTC holders is heating up again. Aggregate volume from the 1y–5y cohorts just hit $4.02B – the highest since February.
Older coins are on the move 🧵👇 pic.twitter.com/jhMETQFJdB— glassnode (@glassnode) May 28, 2025
The 3-5 year cohort led the charge with $2.16 billion in outflows, marking their second-largest disposal after the March 2024 spike. While such movements can often hint at top-like behavior, they can also be interpreted as strategic profit-taking during periods of strong price action.
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