The concept of the U.S. government maintaining a Bitcoin strategic reserve could boost its price, but it is unlikely to materialize soon, says Ari Paul, CIO at BlockTower Capital.
“I’d lay 10:1 against the US adding Bitcoin as a strategic reserve in the next 4 years,” Paul noted in a July 18 X post.
He added, “Plausible to me that Trump might say it, which would be very bullish for the BTC medium time frame,” amidst traders’ concerns over Bitcoin struggling to reclaim the $65,000 price level as support.
Paul elaborated that while a future president might declare they won’t sell any of the government’s Bitcoin holdings, this doesn’t equate to establishing a “Bitcoin Strategic Reserve.”
He questioned what would qualify as a declaration, suggesting it could range from an off-the-cuff statement by Trump to an executive order, highlighting that the U.S. government already confiscates Bitcoin in various scenarios.
A strategic reserve refers to a stockpile of resources held by governments for emergencies. For example, the U.S. maintains the largest supply of emergency crude oil, known as the “Strategic Petroleum Reserve,” to mitigate potential oil supply issues.
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Paul’s remarks come amid social media buzz that former President Donald Trump might announce plans to designate Bitcoin as a strategic reserve if he wins the election.
This speculation is tied to an expected announcement during the Bitcoin 2024 conference in Nashville.
“Getting more and more confirmations that these rumours maybe true. Trump to announce a USA Bitcoin strategic reserve in Nashville,” wrote Simon Dixon, founder of BnkToTheFuture, in a July 18 X post.
“People don’t believe the USA could implement a Bitcoin Strategic Reserve but at this point it is inevitable,” stated Dennis Porter, CEO and co-founder of Satoshi Act Fund, on the same day.
Michael Goldstein, president of the Satoshi Nakamoto Institute, added, “Everyone should have a Bitcoin strategic reserve. You. Your family. Your business. Your city. Your state. Your country. Everyone.”
This follows speculation by entrepreneur Mark Cuban that geopolitical instability and inflationary pressures might propel Bitcoin to become a global reserve asset.
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