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Creating a national Bitcoin (BTC<\/a>) strategic reserve might lead to adverse market effects for BTC and the US dollar, as stated by Haider Rafique, global managing partner for government and investor relations at the cryptocurrency exchange OKX.<\/p>\n Rafique mentioned to Cointelegraph that any administration holding substantial amounts of the BTC supply<\/a> could influence prices by flooding the market with its assets, thus undermining the fundamental idea of BTC as impartial, decentralized currency.<\/p>\n He inquired: \u201cWhat if, in a few years, a new government determines this was a poor decision?\u201d Rafique further remarked:<\/p>\n \u201cDespite recent bipartisan backing for cryptocurrency, it’s crucial to remember that governmental policies can shift rapidly. As situations evolve over time, a significant aggregation of BTC on a nation\u2019s balance sheet could pose a liquidation risk.\u201d<\/p><\/blockquote>\n The German government exemplified this in 2024 when it disposed of 50,000 BTC<\/a>, which kept prices below the $60,000 threshold, Rafique stated.<\/p>\n The Bitcoin strategic reserve remains a primary concern for many Bitcoin proponents, who argue that establishing a national-level BTC treasury is the forthcoming step toward transforming Bitcoin into the global reserve currency<\/a> and the standard unit of monetary account.<\/p>\n Related: <\/strong><\/em>US legislators engage Saylor, Lee to promote Bitcoin reserve legislation<\/strong><\/em><\/a><\/p>\nHazards to the US dollar and additional financial markets <\/h2>\n