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Bitcoin Price Plunge: Samson Mow Explains Strategic Bitcoin Reserve Impact

Discover why Bitcoin's price is dropping despite the U.S. Strategic Bitcoin Reserve and what this means for the cryptocurrency market.
Published on 2025-03-10

Bitcoin Price Plunge: Key Insights

The Bitcoin price has experienced an 11.28% drop since the U.S. Strategic Bitcoin Reserve (SBR) was established, falling from $90,470 to $80,270. Despite expectations of a surge, BTC has struggled to rebound, prompting questions about the reasons behind this decline.

Why Bitcoin is Dropping

Samson Mow, CEO of JAN3, highlights multiple factors contributing to the price drop. The primary reason is a shift in market sentiment, with sellers offering BTC at lower prices. Additional factors include black swan events, sentiment spillover from other markets, liquidations, and stop-loss hunting. "Selling the news" has also played a significant role, as investors capitalize on the SBR announcement.

The Strategic Bitcoin Reserve: A Game-Changer

The SBR, dubbed "Fort Nakamoto," marks a historic milestone. Unlike other cryptocurrencies like ADA, SOL, XRP, and ETH, which are stored separately, the SBR exclusively holds Bitcoin. An upcoming audit will reveal the exact amount of BTC in the reserve, believed to be around 200,000 BTC confiscated from illegal activities over the past decade.

U.S. Government's Bitcoin Strategy

Secretary of Commerce Howard Lutnick is expected to develop strategies to expand the SBR without using the state budget. This move could set a precedent, encouraging other nations to adopt similar Bitcoin reserve strategies, further solidifying Bitcoin's role in global finance.

The establishment of the SBR is a pivotal moment for Bitcoin, signaling its growing recognition as a strategic asset. While the current price drop may seem counterintuitive, the long-term implications of the SBR could be profoundly positive for Bitcoin adoption and value appreciation.

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