U.S. Treasury Considers Expanding Bitcoin Reserve Amid Market Shifts
Crypto 6 days ago
The U.S. Treasury Secretary announced plans to expand the Strategic Bitcoin Reserve using budget-neutral approaches, such as reallocating funds or generating new revenue. This shift comes despite prior assurances that no additional Bitcoin would be purchased. The reserve, valued at $15-20 billion, primarily consists of seized assets, with supporters advocating Bitcoin as an inflation hedge and financial tool.
Bitcoin’s price surged to $124,000 before dropping to $117,000 due to inflation data reducing expectations of a Fed rate cut. Meanwhile, leadership changes in the digital asset team have raised questions about the program’s direction, as no clear policy roadmap has been disclosed.
While the Treasury reaffirms its commitment to exploring Bitcoin acquisitions, the lack of concrete plans beyond seized assets creates uncertainty. Analysts highlight the challenge of balancing regulation with economic growth, leaving the initiative’s long-term viability in question.