U.S. Launches Strategic Bitcoin Reserve Amid Mixed Reactions
U.S. Strategic Bitcoin Reserve Launched
The United States has officially launched the Strategic Bitcoin Reserve (SBR) through an executive order. This initiative, while highly anticipated, has received a mixed response from the crypto community. The SBR will consolidate Bitcoin from seized funds, with no new funds allocated.
Samson Mow Addresses Concerns
Bitcoin advocate Samson Mow has stepped in to address skepticism surrounding the SBR. He emphasized that Bitcoin is now on par with gold, signaling a significant shift in its recognition as a viable asset. Mow highlighted "budget-neutral" strategies to grow the reserve, such as issuing Bitcoin bonds and selling gold. He expressed confidence that Commerce Secretary Howard Lutnick will successfully implement these measures.
Mow also underscored the broader implications of the SBR. While spot BTC ETFs have already opened doors for institutional adoption, the SBR further legitimizes Bitcoin, potentially accelerating nation-state adoption. Additionally, the reserve is expected to trigger an audit of the U.S. government's Bitcoin holdings, which may reveal a shortfall compared to China, prompting further purchases.
Market Reacts with Caution
Despite the SBR's symbolic importance, its announcement has not sparked enthusiasm in the market. Bitcoin's price dropped 3.13% in the 24 hours following the executive order, trading at $88,399.10. Altcoins like Ethereum, XRP, Solana, and Cardano also saw declines of 4.75%, 2.23%, 4.76%, and 8.24%, respectively.
This market reaction reflects lingering uncertainty about the initiative's impact. While the SBR represents a milestone in Bitcoin's legitimacy, its execution and long-term effects remain under scrutiny.
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