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Why did Bitcoin plunge after the strategic reserve announcement?

Although the promotion of the U.S. strategic Bitcoin reserve is optimistic, the market reaction has been very negative. Why? Because the reserve is formed from existing Bitcoins that the government already holds, which means they will not buy more Bitcoins from the market—no new demand.

However, the official documents added a key statement: the White House now refers to Bitcoin as 'digital gold', acknowledging its strategic importance, and stating that 'being one of the first countries to create a strategic Bitcoin reserve offers a strategic advantage.'

This marks a significant policy shift; although the short-term response is bearish, the long-term impact is extremely bullish!