Are U.S. state governments going on a Bitcoin buying spree? 5% reserve funds entering the market ignites a bull market! The truth is shocking; if you don't click in to see, you'll be the one facing liquidation!

The slightest change in policy often signals a market shift - but between true and false information, there are scythes and opportunities hidden.

Recently, there have been rumors that the U.S. allows state governments to use 5% of their reserve funds to buy Bitcoin. It sounds explosive, but it's largely exaggerated. Currently, no state has legalized the direct allocation of government funds to cryptocurrencies; at most, a few places are exploring tentative policies, such as companies paying taxes with Bitcoin or banks custodizing crypto assets.

Why is this worth paying attention to?

The symbolic significance outweighs the actual: Even if a state were to allocate 5%, based on the total state government reserves in the U.S. of about $3.5 trillion, the theoretical maximum buying power would be $175 billion, but the actual operable funds may be less than 0.1% (around $3.5 billion), which would have limited impact on Bitcoin's $1.1 trillion circulating market value.

It could be manipulated in the short term: Similar news is often used to coincide with futures liquidations. For example, in March 2024, a rumor on Twitter caused BTC to spike 12% in half an hour, then quickly drop back 10%.

My viewpoint: Focus on substantial progress, be wary of narrative hype.

The law remains a high-voltage line: The U.S. Uniform Public Funds Investment Act clearly restricts government funds to low-risk asset investments, and Bitcoin currently does not meet those requirements.

Real breakthroughs are on the fringes:

Case 1: Wyoming passed a bill in 2023 allowing banks to custody cryptocurrencies; although it did not involve government funds, it paves the way for institutional entry.

Case 2: Texas launched a tax exemption policy for Bitcoin mining in 2024, attracting about $1.5 billion in mining investments, indirectly strengthening the binding between local governments and the crypto industry.

Impact on the market: Narrative value > actual buying power.

If the news is true (even if just a pilot program in a single state):

In the short term, it may boost government FOMO narratives, coinciding with the 2024 halving event, or stimulate price volatility. In the long term, what truly deserves attention is the changes in tax and regulatory policies for crypto businesses across states.

If confirmed as false news:

Be wary of the classic harvesting tactic of buying rumors and selling facts, especially when futures long positions are at a high.

Policy games are like a puzzle game - Wyoming and Texas have already placed two pieces; which state will take the next piece? Follow Qiong Qiong Qi to help you dissect the geopolitical landscape of U.S. crypto policies #美联储取消创新活动监管计划