The price of Bitcoin is displayed on a screen at a Bithumb lounge in Seoul, Tuesday. Yonhap

The United States is moving to designate Bitcoin as a strategic asset, raising expectations that this could intensify competition among nations, according to Korbit Research Center, Thursday.

Analyzing the crypto market's outlook for 2025, the research arm of Korea's crypto exchange Korbit predicted that national competition over Bitcoin will begin, resembling geopolitical tensions in space during the Cold War. Optimism was fueled by recent U.S. legislation proposing Bitcoin as a strategic reserve.

"America won the Space Race. Now America must win the Bitcoin Race," Republican U.S. Sen. Cynthia Lummis, who filed the bill, wrote on the social platform X on Dec. 12.

The report highlighted that even in China, where crypto investment and trading are banned, some experts argued that the country should prepare for the changes happening in the United States. Former Binance CEO Changpeng Zhao also predicted that the Chinese government may also move to designate Bitcoin as a strategic asset.

Even Russian President Vladimir Putin acknowledged Bitcoin's potential, suggesting on Dec. 5 that it could be useful as Russia's foreign reserves remain frozen. In anticipation of global shifts, major corporations and financial institutions have already entered the market, focusing primarily on stablecoins and Bitcoin.

"The race to secure Bitcoin at a national level is already underway. If the U.S. Bitcoin Act (which proposes a U.S. strategic Bitcoin reserve) is enacted, the so-called 'Bitcoin space race' among nations could become a reality," the report said. "At that point, holding a certain amount of Bitcoin may become a part of responsibility not only for nations but also for financial institutions."

While it's certain that the second Donald Trump administration will adopt pro-crypto policies, establishing a strategic Bitcoin reserve may not be an easy process, as Federal Reserve (Fed) Chair Jerome Powell has pulled the brakes.

"We're not allowed to own Bitcoin. The Federal Reserve Act says what we can own, and we're not looking for a law change," Powell said at a press conference on Wednesday following the Fed's hawkish rate cut.

This was the first time Powell officially confirmed his stance on the issue. Although Bitcoin could be accumulated at the Treasury level, which oversees government bond issuance, central bank involvement would still be essential for alignment with monetary policy.

Powell's remark caused a plunge in Bitcoin's price, which had recently soared past $108,000, buoyed by Trump's optimism. Bitcoin dipped to $98,800 during the Wednesday market before recovering some losses. As of 3:17 p.m., it trades at $101,137 in Binance, and 151.1 million won ($104,080) in Upbit, Korea's largest virtual asset exchange.