The market impact of the most recent sales has been muted. The reserve matches barely one percent of the circulating supply, and daily trading volume easily absorbs larger flows. What moves price today is not wallet size but policy tone: murmurs that Congress could force liquidation knocked bitcoin three percent in after-hours trading last week.
For veteran Bitcoiners, the irony is bittersweet. The chain stayed neutral, the fork never shipped, and the state that once sold at fire-sale prices now wears a “HODL” badge.
However, we must ask, is the government hoarding Bitcoin seized from citizens what Satoshi envisioned? When the printers of the world’s most powerful fiat currency also own vast amounts of Bitcoin, is there a conflict of interest?
On the road to hyperbitcoinization, there will eventually be a showdown between fiat and Bitcoin. Do Bitcoiners now trust the US government to always act in good faith and to do what’s best for Bitcoin?
So far, the ‘Strategic Bitcoin Reserve’ includes no plan to acquire coins outside of seizures, but the current President owns memecoins, stablecoins, and non-Bitcoin DeFi platforms through his business interests. There’s a lot of pro-Bitcoin rhetoric but little concrete action compared with progress on alt-coins.
Don’t trust, verify – and there’s little verification that Bitcoin (outside of price pumping) benefits from government-held coins.
