Hello everyone, how are you all doing? These are relatively peculiar times. On the one hand, we're seeing Bitcoin along with all other old coins crashing down throughout the market. And on the other hand, we are seeing Donald Trump signing an executive order to make a strategic Bitcoin reserve for the United States or a Bitcoin act. Now the two things don't really relate very well. The mood was that after Trump signs something pro crypto crypto will start rising again and the momentum which was previously dying will be rejuvenated again, but as we are seeing that is not the case. Now what can be expected about the market, I don't know. It seems to go down every single time. I look at it but there are some things that I can contemplate from this Bitcoin act. So here goes my propaganda.
The thing is countries around the world have always accumulated different types of assets. Even the United States has a strategic reserve of petroleum. China has pork for some weird reason. There are also other reserves by other countries. No in my thing. What is the basic use case of these reserves? The common use case is to mitigate the high demand compared to low supply or simply stabilizing the price. A very common example with the petroleum reserve I just talked about can be when the price of petroleum was rising in the states. They released petroleum from their reserve to keep supply in the market and in turn keep the prices stable. And then when the prices went down than the expected value they bought them up and refilled that reserve again. Now if the same thing happens with Bitcoin and United States supposedly thinks that they are the savior of cryptocurrency along with the democracy which we've been seeing for the past many years. Now, they will release Bitcoin whenever Bitcoin prices are high and they will buy up Bitcoin whenever Bitcoin prices are low. In other words, they might attempt to stabilize the price. Now. That might be good news as Bitcoin was aimed to be a substitute to traditional fiat currency at the same time. It's bad news for traders and long-term holders. Because the price won't be volatile. Neither price will go up. Currently there is speculation that they might buy Bitcoin by selling the gold they hold in fort Knox. As crazy as it sounds, it's actually not going to hamper the economy because gold is basically useless since no currency is currently pegged to gold. But selling off all that gold can have repercussions as major countries around the world are actually trying to buy up as much gold as they can because they want to de-dolarize.
I personally wanted the prizes to go up after this announcement because of my own personal trades. And probably that can still happen as the announcement is only a couple days old and things actually take time in the real world. So fingers crossed to the market being bullish again.