A Bitcoin strategic reserve may be bad for BTC and USD — Crypto exec

Haider Rafique, global managing partner at OKX, warns that establishing a national Bitcoin strategic reserve could negatively impact Bitcoin (BTC) and the US dollar. He argues that such reserves allow governments to manipulate Bitcoin prices, undermining its promise of neutrality and decentralization. Rafique questions the long-term viability of a Bitcoin reserve, noting that political shifts could lead to changes in policy regarding BTC holdings, which could pose liquidation risks. He cites the German government’s actions in 2024 as an example, where interventions kept Bitcoin prices suppressed. Rafique emphasizes the broader macroeconomic implications, suggesting that a Bitcoin reserve could damage confidence in the US dollar and result in investors moving to safer assets like gold, which could trigger a significant market downturn. The conversation around national BTC treasuries continues among Bitcoin advocates, although Rafique cautions against the potential fallout in global finance.

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