Just today, David Sacks revealed on platform X that U.S. President Trump signed a major news: the United States is going to establish its own strategic Bitcoin reserve! As soon as this news broke, it caused quite a stir, and everyone is watching closely. Strangely, though, Bitcoin's price fell instead of rising, dropping more than 5% in just ten minutes. It's puzzling how such a good policy led to a decline.
Let's take a look at what this policy actually says. In simple terms, the U.S. government plans to establish a strategic reserve using Bitcoin that has been confiscated through legal means, without costing the public a dime. It is said that the government currently holds about 200,000 Bitcoins, but the exact number has never been clear before. This policy requires a thorough investigation so that everyone has an idea.
Then, these Bitcoins will be stored by the government like 'digital gold' and won't be easily sold off. The government sold too early in the past and lost a lot of money, so this time they must learn their lesson. The Treasury and Commerce Departments also need to find ways to acquire more Bitcoin without increasing our burden.
Trump has fulfilled his campaign promise to make America the 'leader in cryptocurrency'. With this policy, everyone feels that the U.S. government is genuinely supporting the digital asset industry and embracing new technology.
But why did Bitcoin still fall? Logically, this policy should be a great thing for Bitcoin; the government recognizes it and there’s no worry about the government selling off to depress the price. Bitcoin has now gained the identity of 'digital gold' with national endorsement, and in the long term, its value should become more stable.
But the market just doesn't buy it. I think it might be because people's expectations were too high before the policy was announced. Many speculated that the U.S. government would directly purchase Bitcoin, leading to a sudden increase in reserve size. But the policy stated that the source of funds could only be confiscated Bitcoin, and it had to be 'self-funded', which dashed those expectations.
It's like waiting a long time for a feast, only to find that the dishes are far from what you imagined, which is certainly disappointing. Some investors saw that the policy did not meet their expectations and quickly sold off, causing the price to drop naturally.
Moreover, Bitcoin has risen significantly recently, and any slight fluctuation could trigger a correction. The global economy is unstable, and everyone is cautious about risk assets. Also, how the policy is implemented will depend on future developments; there are still many uncertainties, and some people might choose to wait and see.
Overall, Trump's policy has made a significant mark for the digital asset industry in the United States. Although the short-term market reaction is not great, the long-term value of Bitcoin is still worth looking forward to. Let's see if the status of this 'digital gold' can stand firm!
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