BTC

U.S. Bitcoin Strategic Reserve: Long-term Impact

The U.S. Bitcoin Strategic Reserve is made up of confiscated bitcoins, which Trump had promised earlier, and the market has long anticipated this.

On one hand, the U.S. will no longer sell the over 200,000 bitcoins previously confiscated, which is a hidden selling pressure. Not selling now means that at least for 4 years, they won’t flow into the market, which is much stronger than imagined. If Vance takes over, it could even be locked up for 12 years. Furthermore, the U.S. continues to enforce the law, and all confiscated bitcoins go into reserves, which in the long term is a slow buyback. As long as you haven't done anything wrong, holding bitcoins is equivalent to sharing in the U.S. crackdown on crypto crime benefits, and the proportion of holders will gradually increase across the network.

On the other hand, the U.S. taking the lead in establishing a Bitcoin Strategic Reserve has a significant impact on other countries. In the next 1 to 2 years, more countries will follow suit, and the later the establishment, the higher the cost. As reserves increase, the U.S. policy tilt towards Bitcoin will become more pronounced, and global attention and acceptance of Bitcoin may continue to rise.

Follow me to learn more about cryptocurrency information and consultations.