OKX executive: The government's establishment of a strategic Bitcoin reserve may have a negative impact on Bitcoin and the US dollar

According to Odaily Planet Daily, Haider Rafique, Global Managing Partner of Government and Investor Relations at the cryptocurrency exchange OKX, stated that a government's establishment of a strategic Bitcoin reserve could negatively impact both Bitcoin and the US dollar. He believes that large government holdings of Bitcoin could manipulate prices through market sell-offs, undermining Bitcoin's core attributes of decentralization and neutrality. He cited the example of the German government's sale of 50,000 Bitcoins in 2024, which caused the price to remain below $60,000. He pointed out that government policies are volatile, and a new administration could overturn previous decisions, creating the risk of liquidation.

Rafique further pointed out that while Bitcoin supporters view national reserves as a key step in promoting Bitcoin as a global reserve currency, such a move could trigger widespread macroeconomic shocks. The most direct impact would be to shake confidence in the US dollar and expose the weakness of relying solely on economic strength to maintain the value of a currency. Investors might sell dollars and turn to traditional safe-haven assets such as gold or the Swiss franc, while simultaneously selling risky assets, triggering a chain reaction of liquidations in financial markets and causing significant market declines. He believes that national Bitcoin reserves not only affect the crypto market but also have the potential to trigger systemic risks in the transformation of the global financial system. (Cointelegraph)