The US government’s decision to establish a Bitcoin reserve is a double-edged sword for traders in my opinion.
On one hand, it legitimizes Bitcoin as a “digital gold” which could attract institutional investors and stabilize prices over time.
On the other, the lack of clarity on whether additional assets will be purchased or if this is purely a seized-asset reserve creates uncertainty.
For now at least, volatility seems inevitable, so short-term traders should keep stop-losses tight.
