Key Insights:
- U.S. reportedly aims to acquire 5% of total Bitcoin supply.
- OTC Bitcoin supply hits seven-year low amid institutional demand.
- Inverse Head and Shoulders pattern suggests $300,000 BTC target.
The U.S. government is reportedly preparing to acquire up to 5% of the total Bitcoin supply. This shift marks a major turning point in the financial landscape, as the U.S. moves away from traditional assets like gold and towards Bitcoin, which is increasingly being recognized as “digital gold.”
Gold Out, Bitcoin In: A Paradigm Shift
For decades, gold has been recognized as wealth preservation. However, Bitcoin is rapidly gaining ground as a more efficient and secure store of value. Market analyst MerlijnTrader recently reported that the U.S. is flipping gold for Bitcoin, with plans to acquire 5% of Bitcoin’s total supply.
This move would be the largest single acquisition in cryptocurrency history and could be a signal that Bitcoin is superseding gold as a preferred asset for institutional investment.
Bitcoin’s rise to prominence as “digital gold” reflects a growing belief in its ability to store value over time. As traditional markets face inflationary pressures and economic uncertainty, Bitcoin’s finite supply makes it a more attractive investment compared to gold. By allocating substantial resources to Bitcoin, the U.S. could strengthen its position in the digital asset world, potentially pushing other nations to follow suit.
Institutional Demand and OTC Supply Shortage
Bitcoin’s recent rally has been driven by institutional demand and a shortage of supply on over-the-counter (OTC) desks. Between March and April 2025, BTC surged from $75,000 to $130,000, fueled by growing interest from institutional buyers.
Bitcoin supply on OTC desks is at a 7 year low. The market has played a crucial role in this price increase, with large institutional investors turning to over-the-counter desks to secure Bitcoin directly.
Since the available supply of Bitcoin on exchanges keeps dwindling, institutions are now competing for the limited remaining supply of BTC by way of upward price pressure.
Since mid – 2022, the balance of Bitcoin that OTC desks have been holding has been declining steadily. This supply shortage means that market participants are buying all of the BTC at a high rate.
There is strong demand for the cryptocurrency and these factors explain why Bitcoin’s price target is $130,000.
Bitcoin Target Price and Market Dynamics
Technical patterns have been strongly supporting Bitcoin’s most recent price movements. According to market analyst GertvanLagen, Bitcoin recently bounced off the neckline of a 4 year old Inverse Head and Shoulders (iH&S) pattern. In the case of BTC , this is a traditional bullish indicator of possible further bullish momentum.
According to this chart, the projected target is the price of BTC at around $300,000 where the pattern displays a strong bullish continuation. As long as $75,500 can be held as support, the path toward this target remains intact.
However, it will take a market correction if Bitcoin falls below this support level. Both investors and traders will be keenly looking at the level as an indicator for the viability of Bitcoin reaching its price target of $300,000.
With the dollar in a decline, BTC is increasingly seen as a hedge against currency debasement. This has led institutions to reallocate from fiat-based reserves into crypto, adding further fuel to BTC’s rally.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.