Note that even the authorities of some states in the United States want to invest in Bitcoin. They explain the initiative by the desire to protect themselves from the depreciation of the dollar, and the relevant legislation for this is already ready.

Buying cryptocurrencies by investors

Read more about the topic in a separate article.

Which countries will buy bitcoins?

The bold strategy of the President-elect of the United States found support far from many members of other governments of the world. For example, Japanese Prime Minister Shigeru Ishiba said that his country has little information about the peculiarities of the formation of the U.S. crypto reserve. At the same time, in general, Japan is unlikely to resort to such a measure in the foreseeable future.

In an interview, Prime Minister Shigeru Ishiba said he has little understanding of the “actions” of countries that are engaged in discussions about setting up potential crypto reserves. Here’s his rejoinder, as quoted by Cointelegraph.

It is difficult for the government to express its position on this.

This was the answer to a question from Satoshi Hamada, a member of the House of Councillors. He asked what steps Japan was taking towards implementing Bitcoin as a reserve, citing initiatives within the US and elsewhere.

Here is one of Hamada’s statements on the situation.

I believe that Japan should follow the example of the US and consider moving some of its foreign exchange reserves into crypto-assets such as Bitcoin.


The prospect of massive bitcoin purchases by governments of various countries seems imminent. Still, the digital asset has gained a lot of fans after the launch of spot ETFs in the U.S. in January 2024. Well, BTC itself continues to feature a limited maximum supply, a steady 50 per cent decline in inflation rates roughly every four years, and the transparency of the blockchain at its core. These advantages are enough to make the cryptocurrency be perceived as a full-fledged analogue of gold - albeit in virtual form.


Japanese Prime Minister Shigeru Ishiba

Ishiba, for his part, emphasised that crypto-assets are not categorised as foreign currencies.

Earlier, Strike founder and CEO Jack Mallers expressed the opinion that Donald Trump may issue an executive order on the creation of a national Bitcoin reserve on the first day of his presidency. However, this is only a version that could easily fail.

At the same time, Brazilian Congressman Eros Biondini on the eve presented a bill on the creation of a sovereign federal Bitcoin reserve. The document proposes the creation of a Sovereign Strategic BTC Reserve, known by the acronym RESBit.

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Meanwhile, major crypto platforms say that over-the-counter (OTC) trading volumes have risen sharply over the past few months, with the outcome of the US presidential election being a key factor here.

Here’s a statement from Tim Ogilvie, head of institutional trading at Kraken, on the matter, as quoted by The Block.

In a nutshell, OTC trades are on the upswing right now. Prices are rising, but volumes are increasing even more.

BTC trading volume on major cryptocurrency exchanges

Ogilvy noted that Kraken’s OTC trading volumes are up 220 per cent year-over-year. Other OTC trading companies have also seen similar growth.

For example, Wintermute OTC trader Jake Ostrovskis said the market was relatively quiet in the middle of the year before cryptocurrency prices started to rise before the election. He said Wintermute had been in talks with some clients for several years, and the election was just the signal for them to start trading.

Cryptocurrency trader

A trader at market-making company GSR, Embert Lin, said the company’s trading volumes have also increased significantly since the US presidential election.

Amid the rise of Bitcoin and altcoins, projects along with investors are becoming more active in managing their resources and risks at these levels. Institutional investors and other players are also looking for new opportunities and ways to invest outside of BTC and ETH.

BitGo, with relatively little hype, opened an OTC trading desk in the first half of 2024 to capitalise on increased volumes following the approval of a Bitcoin ETF in the US. Brett Reeves, head of the Go Network at BitGo, said the election was a major factor in the volume growth, with two-thirds of trading occurring in the last three months.

Reeves expects the increased demand to continue next year – especially for Bitcoin and Efirium. He noted that OTC deals have reduced some of the volatility in exchange trading, although it is still higher than in traditional finance.

Here it is worth noting the increased selling pressure on the digital asset market. Still, more than 33 thousand bitcoins equivalent to $3.23 billion were sent to centralised crypto exchanges in the last week. This means that there are more than enough people willing to get rid of crypto lately.

The influx of bitcoins to centralised cryptocurrency exchanges


So far, official Japanese authorities have no plans to allocate funds for bitcoin purchases. However, that doesn't mean that this will continue forever. Still, a year ago, the U.S. Securities and Exchange Commission's ongoing terror against the coin industry also seemed endless.


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