Trump's recent actions have directly overturned the crypto market! Is the U.S. going to use Bitcoin as a national safe?
Core of the event
Recently, Trump acknowledged that the U.S. government holds a significant amount of Bitcoin and announced it will be permanently locked as a strategic reserve. Previously, when the government confiscated virtual currencies, they usually auctioned them off for dollars, but this time Bitcoin is directly upgraded to a 'strategic material,' indicating a significant shift in attitude.
Deeper significance
This move suggests that the U.S. may be concerned about the instability of the dollar's status, viewing Bitcoin as a 'digital gold' reserve, reserving a fallback for economic risks. This is the first time the government has equated virtual currency with gold foreign exchange reserves, sending a strong signal.
Market response
The crypto market is in a frenzy, with Bitcoin prices skyrocketing. Supporters believe this is an official endorsement, while opponents question it as a means for Trump to attract votes. However, the market has already voted with its actions, showing a long-term bullish outlook under supply and demand logic.
Impact on ordinary people
The total supply of Bitcoin is fixed, and the U.S. locking it up will increase its scarcity, reducing circulation which may drive up prices. It could potentially become a substitute for 'digital dollars,' bringing significant benefits to holders in the future.
Election strategy
Trump chose to roll out this policy before the elections, aiming to attract support from the crypto and fintech communities, using 'national certification' to exchange for votes, with clear political intentions.
Greater speculation
If the U.S. incorporates Bitcoin into its national reserve system, or even ties it to the dollar, the global financial system may face a significant shake-up, with Bitcoin potentially becoming the core currency of the digital age.
Potential risks
While government locking reduces supply, any future sell-off could trigger market turmoil. Currently, retail investors may find it harder to buy at the bottom, needing to remain vigilant about the risk of sudden policy changes.
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