Last Thursday, President Donald Trump announced an implementation order with which the United States sets up a strategic bitcoin (BTC) reserve. The US government will not sell its current stock to confiscated BTC, which reduces sales pressure on the market. This news has major implications for the crypto sector, but investors respond divided.
Bitcoin as a state reserve
The US government currently owns around 198,000 BTC, with an estimated value of $ 17.3 billion. Instead of selling these coins, the government now chooses to maintain them as a strategic reserve.
According to the Crypto adviser to the White House, David Sacks, this is done without spending tax money. In addition to Bitcoin, other confiscated crypto currency is also stored, but they do not receive official status as reserve assets.
Mixed market reactions
Although some experts see this as a big step towards the institutional acceptance of Bitcoin, not everyone is enthusiastic. The market had clearly calculated an active purchase strategy from the government, and that is reflected in the price response.
Yesterday, the Bitcoin rate dropped from $ 90,000 to under $ 85,000, a considerable correction in a short time. This also seems like a typical ‘sell-the-snews’ effect, in which investors take a profit after the long-awaited announcement of Trump’s strategic BTC reserve.
What can we expect in the future
Although the US government does not buy an extra bitcoin at the moment, that does not mean that it will never happen. Minister of Trade Howard Lutnick has been instructed to develop a strategy with which the US may be able to accumulate more BTC, without extra government spending.
In addition, this step takes a precedent for other countries. Until now, El Salvador was the only country that Bitcoin used as a national reserve, but with this step that can change quickly.
Now that the US government officially recognizes Bitcoin as a strategic property, this could cause a domino effect. Other countries and institutional investors could therefore be more inclined to include the digital currency in their reserves.
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Source: https://newsbit.nl/trump-haalt-17-miljard-aan-bitcoin-uit-de-markt-wat-betekent-dit-voor-btc/
