The idea of the United States government holding a Bitcoin strategic reserve may be "bullish" for its price, but is unrealistic to actually come to fruition in the near term, according to chief information officer at BlockTower Capital, Ari Paul.
“I’d lay 10:1 against the US adding Bitcoin as a strategic reserve in the next 4 years,” Paul wrote in a July 18 X post.
“With that said, plausible to me that Trump might *say* it, which would be very bullish for the BTC medium time frame,” he added, amid traders pointing out the struggle that Bitcoin (BTC) has had reclaiming the $65,000 price level as support in recent times.
Paul further explained that while it may be possible that the next president says they "don't intend to sell" any of the government's current Bitcoin holdings, it doesn't mean they're actually "establishing a Bitcoin Strategic Reserve."
"What counts as a declaration? An off the cuff statement by Trump? An executive order? The US gov confiscates bitcoin in an ongoing way already," he added.
A strategic reserve is a store of resources kept by governments for emergencies or unexpected events. For example, the US government holds the largest supply of emergency crude oil, the 'Strategic Petroleum Reserve' which is held to reduce the effects of potential oil supply problems.
Social media speculation of Trump making an announcement
Paul's comments follow social media speculation that former US president Donald Trump may announce plans to make Bitcoin a strategic reserve if re-elected in this year's election, during the Bitcoin 2024 conference this month in Nashville.
“People don’t believe the USA could implement a Bitcoin Strategic Reserve but at this point it is inevitable,” Satoshi Act Fund CEO and co-founder Dennis Porter stated in a July 19 X post.
“Getting more & more confirmations that these rumours maybe true. Trump to announce a USA Bitcoin strategic reserve in Nashville,” BnkToTheFuture founder Simon Dixon wrote on the same day.
“Everyone should have a Bitcoin strategic reserve. You. Your family. Your business. Your city. Your state. Your country. Everyone,” Satoshi Nakamoto Institute president Bitstein added.
It comes after entrepreneur and investor Mark Cuban recently speculated that geopolitical instability and inflationary pressures may propel Bitcoin to become a global reserve asset.