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US Strategic Bitcoin Reserve Explained
- The US strategic Bitcoin reserve is composed entirely of seized Bitcoin from criminal cases, not newly bought assets.
- The reserve mainly acts as a hodler rather than an active market participant, surprising many expecting government purchases.
Government Bitcoin Sales Affect Market
- The US government's Bitcoin holdings are used and sold periodically to manage revenues rather than held purely for strategy.
- Selling large amounts of seized Bitcoin can destabilize the market, complicating government attempts to support prices.
Stablecoins Fuel Crypto Liquidity
- Stablecoins like Tether act as casino chips required to trade on many decentralized exchanges.
- These stablecoins are heavily used by financial entities and criminals for massive liquidity, not just by casual users.