Trump signs an executive order to establish a Bitcoin strategic reserve, funded by Bitcoin obtained from criminal or civil asset seizures. What are the considerations behind this?
Short-term negative impact, the market is already skittish at this point; Trump has controlled the market with his words, causing sharp declines and spikes with just a slight comment. Long-term positive impact, Bitcoin is recognized and recorded as a national strategic reserve. Regardless of whether the U.S. actually spends money to buy it, at least it has been granted national-level status, which will influence other countries and capital institutions' regard for Bitcoin. Demand increases, and sell-offs decrease, but this does not mean that other altcoins are necessarily positive. As Bitcoin's weight increases, for institutions, altcoins—especially those with no liquidity and no speculative potential—hold no investment value at all.
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