Experts say the market is underestimating the impact of the U.S. Strategic Bitcoin Reserve, putting pressure on institutions, countries, and asset managers.
Ryan Rasmussen, head of research at asset management firm Bitwise, has emphasized on the social media platform X that the market is overlooking the significant impact of the Strategic Bitcoin Reserve of the United States.
Impact of the Strategic Bitcoin Reserve
On March 6, President Donald Trump signed an executive order establishing the U.S. Strategic Bitcoin Reserve and the U.S. Digital Asset Reserve, with the aim of positioning the U.S. as a leader in the digital asset strategy. The Bitcoin Reserve will be funded with approximately 200,000 BTC (worth around $17 billion) seized through criminal and civil forfeitures, serving as a store of value without additional taxpayer costs.
The Digital Asset Reserve will include other cryptocurrencies obtained similarly, with the Treasury Department overseeing the management. This move underscores the government's commitment to integrating digital assets into the national financial framework.
Rasmussen highlighted the increasing corporate Bitcoin purchases, noting that in 2024 alone, public companies bought Bitcoin twice the total of all previous years combined. He emphasized, "In 2024, public companies bought BTC twice the total of all previous years combined. Over 70 of these companies now hold a total of $52 billion in Bitcoin (3% of the total supply)." He added, "Companies are buying Bitcoin for the same reasons individuals are buying. And for the same reasons governments will buy."
The Bitwise research head outlined the broader implications of the U.S. Strategic Bitcoin Reserve, asserting that it will spur other countries to follow suit and remove barriers for asset managers, financial institutions, pension funds, and endowments.
He said, "The endgame is never 'the U.S. government buys all the Bitcoin in the world.'" Instead, he explained: The U.S. Strategic Bitcoin Reserve means... other countries will buy Bitcoin, asset managers have no reason to refuse, financial institutions have no reason to refuse, [and] pension/endowment funds have no reason to refuse.
He further stated that this also means "the fear of the U.S. selling has gone away, the U.S. may buy more, the likelihood of states buying has just gone up, [and] the probability of a government banning Bitcoin is certainly zero." Encouraging a broader perspective, he concluded, "Look beyond," emphasizing that Bitcoin's role in global finance is still unfolding.
