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According to an analyst, the market is wildly underestimating the power of the U.S. Strategic Bitcoin Reserve, which puts pressure on governments, institutions, and asset managers to change or risk falling behind.
Ryan Rasmussen, head of research at asset Management Company Bitwise, stated on X that he believes there is a significant market gap concerning the U.S. Strategic Bitcoin Reserve. He said:
“The market is significantly underestimating the U.S. Strategic Bitcoin Reserve's long-term effects."
Digital Asset Strategy
President Donald Trump signed an executive order creating a U.S. Digital Asset Stockpile and a Strategic Bitcoin Reserve to make the U.S. a leader in digital asset strategy. About 200,000 BTC taken through criminal and civil penalties will fund the Bitcoin reserve, which will act as a store of value without adding to taxpayer expenses.
The Treasury Department will manage the Digital Asset Stockpile, which will contain more cryptocurrencies collected in the same way. This action indicates the administration's resolve to incorporate digital assets into the country's financial system.
Surge in Corporate BTC
According to Rasmussen, in 2024 alone, public corporations purchased double as much bitcoin as they did in all previous years combined, and there was also a spike in corporate BTC acquisitions.
"Public corporations bought twice as much Bitcoin in 2024 as they did in all previous years combined," he said. Together, these 70+ businesses currently hold $52 billion worth of Bitcoin or 3% of the total supply. He also stated that Businesses purchase bitcoin for the same reason everybody else does. And governments will for the same reason.
Ryan Rasmussen Suggestions on BTC Reserve
On March 6, the head of research at Bitwise described the larger implications of a U.S. Strategic Bitcoin Reserve, claiming that it would encourage other countries to do the same while lowering hurdles for investments, pensions, asset managers, and financial institutions.
He said that the endpoint was never to have the U.S. government purchase all of the bitcoin in the world. He explained:
“Other nations will purchase bitcoin if the United States establishes a strategic bitcoin reserve. Wealth managers, financial institutions, and pensions/endowments will all be left without an excuse.”
Additionally, he stated that "there is no longer any fear of the U.S. selling, the U.S. will probably buy more, the chance of states buying just increased, and the probability that the government will outlaw bitcoin is absolutely zero." He ended by suggesting a more comprehensive viewpoint and stated that the significance of Bitcoin in international finance is still developing.
