tl;dr
A Strategic Bitcoin Reserve (SBR) has been created in the United States through an executive order, consolidating BTC from seized funds. Samson Mow addressed concerns, stating that the reserve equates Bitcoin with gold and there will be buying. He suggested "budget neutral" ways to acquire Bitcoin. ...
A Strategic Bitcoin Reserve (SBR) has been created in the United States through an executive order, consolidating BTC from seized funds. Samson Mow addressed concerns, stating that the reserve equates Bitcoin with gold and there will be buying. He suggested "budget neutral" ways to acquire Bitcoin. Mow highlighted the significance of the SBR in institutional adoption and nation-state competition. The market reaction has been negative, with the price of Bitcoin and altcoins slumping following the executive order.
The long-awaited Strategic Bitcoin Reserve (SBR) in the United States has finally been created through an executive order. However, the move had a somewhat negative reaction in the crypto community. While no new allocation of funds will be made, the reserve will feature BTC consolidation from seized funds.
Samson Mow named a number of "budget neutral" ways to stack up Bitcoin, including issuing Bitcoin Bonds and selling gold. Mow also hinted at the ultimate significance of the Bitcoin reserve. He said that while spot BTC ETF products ushered institutional investors in adopting Bitcoin as a viable asset class, this SBR placed the coin on par with gold. With this move, he believes the race for nation-state adoption will grow significantly. Beyond proof of the legitimacy of Bitcoin as an asset, Samson Mow said that through the SBR, there will be an audit of the amount of BTC owned by the U.S. government. With the audit likely to show a disparity in the actual BTC owned by the U.S. compared to China, the government might have to step up to buy more of the coin.
Creating the Strategic Bitcoin Reserve has failed to generate corresponding excitement among market participants. Following the executive order on March 6, the price of Bitcoin slumped. At the time of writing, BTC price was trading for $88,399.10, down by 3.13% in the past 24 hours. Beyond this, altcoins like Ethereum (ETH), XRP, Solana (SOL) and Cardano (ADA) also nosedived by 4.75%, 2.23%, 4.76% and 8.24%, respectively. This current outlook proves that, despite its goodwill, there is a vote of no confidence in the federal move.