U.S. Makes Bitcoin a Strategic Reserve , does this mean they’ll Never Dump Again

[Yamifoud]

There’s a proposed bill in the U.S. called the BITCOIN Act of 2025, which aims to create what they call a “Strategic Bitcoin Reserve.” If this bill eventually passes, it would mean the government’s seized and held Bitcoins would officially be treated as national reserve assets, not something they can just sell anytime.

According to the official White House statement,
“Government BTC deposited into the Strategic Bitcoin Reserve shall not be sold and shall be maintained as reserve assets.”
(source: whitehouse.gov)

That’s a big shift from how people used to see U.S. holdings. Before, everyone worried that the government might dump seized Bitcoins, like those taken from Silk Road and other criminal cases  and cause a market panic. But now, it seems they want to hold it as a long-term national asset instead.

U.S. Bitcoin Holdings
Estimated total: around 198,000 BTC, worth roughly $23–24 billion at current prices.
(source: bitcointreasuries.net)

Does This Mean “No More Dumps”?

Maybe yes, maybe not.
The “shall not be sold” clause sounds strong, but remember, laws and executive orders can always be amended or reversed in the future.

Still, it’s a good sign. It means the U.S. is now viewing Bitcoin as something worth keeping, not just selling off for cash. It also reduces the risk of those sudden liquidation events that used to scare the market.

Questions ~~~

Do you think this move means the U.S. will never dump its BTC again?
And what happens if other countries start doing the same, will this change how Bitcoin’s supply behaves long-term?

[OcTradism]

If a big nation makes bit decisions such as adding a new asset like Bitcoin to their national treasury AND this assest works well or excellently with time, there is no reason to dump it on the market.

Especially if it has become a new global trend, then nations adopt Bitcoin earlier will have very good advantage compares to lae comers. Good decision and policy makers surely see this great advantage for their nations and will be very strongly against dumping idea.

They even have better plans of holding than Bitcoin whales in the community if they already see a bright future with bitcoin by buying and holding it as the end game.

[alani123]

The government did not BUY BTC. They had a stash from seizures and what happened now is that trump said they'd keep it.

Well, there aren't that many safeguards to keeping these coins forever though. If the government changes it's likely this stash will be no more. Especially if BTC prices stay up for that long. And imagine over 20billion worth of BTC being dumped in the open market.

Surely for the mid term it sounds like positive news, but don't take it for granted forever.

[freedomgo]

Whether they dump it or not, they don’t really lose anything since all of it came from seizures anyway. But if the proposed bill gets approved, they’ll probably start accumulating more because they’d want to be the biggest Bitcoin holder in the world.

But honestly, I don’t think they’ll dump. Institutional investors see it differently, if the U.S. starts treating Bitcoin as a strategic reserve, that builds more trust in the asset. The U.S. would gain more by holding it than by selling. We all know how powerful they are, with just one law or hype they can trigger panic or a buying frenzy, so dumping doesn’t seem to make sense at all.

[Gozie51]

I don't think the US government hodling Bitcoin as their assets either through DCA or seizure will not mean that bitcoin won't dump again. However, the dumping you mean may be relative, it may not be regarded as dump but correction of price. Since this current halving, I don't think we have seen price falling to $60k which is a sign that institutional hodlers are still a strong force in the bitcoin adoption. So if US government hodls Bitcoin as assets, it will still operate as we are seeing the price action between buyers and sellers creating volatility and correction. We all know the supply of bitcoin, at least that will not be manipulated. Usually, what causes bitcoin to dump is negative news hitting it during bear and if that happens while US is hodling bitcoin, I believe it will still dump maybe not for long because it is always time to buy more coins when it dumps and at that time, buyers will be fast to accumulate and that will speedily increase the price again.

[tbct_mt2]

The government did not BUY BTC. They had a stash from seizures and what happened now is that trump said they'd keep it.

Well, there aren't that many safeguards to keeping these coins forever though. If the government changes it's likely this stash will be no more. Especially if BTC prices stay up for that long. And imagine over 20billion worth of BTC being dumped in the open market.

Surely for the mid term it sounds like positive news, but don't take it for granted forever.

The story about governments did not buy bitcoin is only in the past and the present while there is potential changes in future. If governments see big advantage of Bitcoin, its bullish future growth and its impact on a national treasury if Bitcoin is added to their national treasury, they will take action.

It is only hardest to start it a first time and later things will happen more naturally and at very faster growth rates. It has been demonstrated with Internet adoption, Bitcoin adoption so far and will not be different in the future with governments' adoption on Bitcoin.

[Felicity_Tide]

Do you think this move means the U.S. will never dump its BTC again?

I'm not sure how someone would ever value what was never bought with their personal money in the first place. I have always appreciated the idea of Bitcoin reserve that is gradually being embraced in different countries, but this idea of using only seized Bitcoin for reserve purposes is clearly an odd approach to me. I honestly think that they aren't going to accumulate much with this strategy compared to what they would have achieved through purchases.

If the proposal is never to sell, which I think is a result of this current administration, who knows what might happen in the next administration?. They never bought it with the country's money, so they clearly have nothing to lose. So, I just feel that the move doesn't guarantee anything. They are the government for some reasons.

And what happens if other countries start doing the same, will this change how Bitcoin’s supply behaves long-term?

I'm not sure if every country proposed this idea of using seized Bitcoin for reserve. They certainly won't do the same anytime soon if if they were using from an actual budget.

[Yamifoud]

I'm not sure how someone would ever value what was never bought with their personal money in the first place. I have always appreciated the idea of Bitcoin reserve that is gradually being embraced in different countries, but this idea of using only seized Bitcoin for reserve purposes is clearly an odd approach to me. I honestly think that they aren't going to accumulate much with this strategy compared to what they would have achieved through purchases.

If the proposal is never to sell, which I think is a result of this current administration, who knows what might happen in the next administration?. They never bought it with the country's money, so they clearly have nothing to lose. So, I just feel that the move doesn't guarantee anything. They are the government for some reasons.

Somehow you can also look at it this way.. if they sold those coins through auction and kept the money, then when the time comes that the bill gets approved, and assuming they no longer hold the Bitcoin, they can just buy again using the profit they made from the sale. So in the end, it’s still the same, at least in my opinion.

The government did not BUY BTC. They had a stash from seizures and what happened now is that trump said they'd keep it.

Well, there aren't that many safeguards to keeping these coins forever though. If the government changes it's likely this stash will be no more. Especially if BTC prices stay up for that long. And imagine over 20billion worth of BTC being dumped in the open market.

Surely for the mid term it sounds like positive news, but don't take it for granted forever.

They won’t dump everything at once since it would shake the market badly, especially with Strategy being the top Bitcoin holder,  and it’s an American company. Imagine, Strategy already holds around 640,031 BTC, a massive number compared to what the U.S. government is holding. I’m sure they’ll aim to surpass that someday, and they can easily do it too since they’ve got the funds and the motivation to become the world’s number one Bitcoin holder.

[Z-tight]

Strategic reserves, be it gold, oil or BTC, are not sold without cause. They are to be held for a very long time and the government only dips their hand into it in a crisis, emergencies and other similar situations. So when you ask us if the U.S. government will ever sell their BTC strategic reserve if it becomes law, then we do not have that answer for you, because we do not know what will happen in the future and if they will need it to curtail one unforseen circumstance or the other. But the idea is to hold it for as long as possible.

And what happens if other countries start doing the same, will this change how Bitcoin’s supply behaves long-term?

I don't quite catch this question. BTC has a capped supply, how can this action affect its supply?

[Yamifoud]

And what happens if other countries start doing the same, will this change how Bitcoin’s supply behaves long-term?

I don't quite catch this question. BTC has a capped supply, how can this action affect its supply?

I mean the circulating supply.

[Satofan44]

A reserve is not a reserve if it is sold during market fluctuations. That is an investment. A real reserve is never sold unless there is an extreme crisis during which other options are exhausted first.

Do you think this move means the U.S. will never dump its BTC again?

There are no guarantees here because the US politics have extreme swings. Democrats are crazy and anti freedom. Actually they don't even care personally about Bitcoin, but if Republicans support something then these lunatics want to be against it.

I mean the circulating supply.

What about it? Long before any government considered Bitcoin seriously there were many individual HODLers who were changing the circulating supply. The circulating supply is always going to be trending down for many reasons.

[Yamifoud]

I mean the circulating supply.

What about it? Long before any government considered Bitcoin seriously there were many individual HODLers who were changing the circulating supply. The circulating supply is always going to be trending down for many reasons.

Yes, there are HODLers, but they’re not the true kind like institutional investors who actually plan to hold long term. Before, there were people claiming to be HODLers, but most of them were just manipulating the market. If you’ve noticed, years ago the pump-and-dump schemes were very obvious.

Now, with more institutions holding Bitcoin, the market’s become a bit more stable. And if governments start treating Bitcoin as a reserve, starting with the U.S. ... hopefully other countries will follow too. That would reduce the circulating supply, which in turn could push the price higher.

[Satofan44]

I mean the circulating supply.

What about it? Long before any government considered Bitcoin seriously there were many individual HODLers who were changing the circulating supply. The circulating supply is always going to be trending down for many reasons.

Yes, there are HODLers, but they’re not the true kind like institutional investors who actually plan to hold long term. Before, there were people claiming to be HODLers, but most of them were just manipulating the market. If you’ve noticed, years ago the pump-and-dump schemes were very obvious.

Now, with more institutions holding Bitcoin, the market’s become a bit more stable. And if governments start treating Bitcoin as a reserve, starting with the U.S. ... hopefully other countries will follow too. That would reduce the circulating supply, which in turn could push the price higher.

Very wrong, you just made that up without even thinking or reading up on any past experiences about convinced Bitcoiners. Many people have been HODLing for more than 10 years and will continue to HODL Bitcoin indefinitely. That is far stronger conviction and on average a longer holding time than the holding time of most assets by any institution. Tell me how many institutions did not sell an asset that experienced a 1000 fold growth in price while they held it? You can ask ChatGPT for help. 

Institutions do not have conviction. They may hold something for long but it is because that is the practice of long-term investing. Someone with a strong conviction will always outlast an institution.

[Cryptomultiplier]

...
Questions ~~~

Do you think this move means the U.S. will never dump its BTC again?
And what happens if other countries start doing the same, will this change how Bitcoin’s supply behaves long-term?

Already, some countries have Bitcoin or cryptocurrency strategic reserve or are on the verge of having theirs, because only the US government these days, aren't allowed total dominance over the financial market. So we should expect Japan, China, India, Russia and other world power to join the band wagon and own their own strategic reserve.

Also, the US government institutionalizing their strategic Bitcoin Reserve is a powerful sign of acceptance and that means there would be an almost bullish season for the long term.
However, this doesn't mean that the US government has the power to influence global demand and supply chain, nor has power over the volatile nature of Bitcoin's price, market forces and sentiments.

[Frankolala]

Do you think this move means the U.S. will never dump its BTC again?

I'm not sure how someone would ever value what was never bought with their personal money in the first place. I have always appreciated the idea of Bitcoin reserve that is gradually being embraced in different countries, but this idea of using only seized Bitcoin for reserve purposes is clearly an odd approach to me. I honestly think that they aren't going to accumulate much with this strategy compared to what they would have achieved through purchases.

The US is considering converting their gold reserve into bitcoin in order to establish a bitcoin reserve for the country. They have plans of buying 200,000 bitcoin in the spread of five years. This shows that they don't want to depend only on the seized bitcoin in their custody for setting a bitcoin strategy reserve. If the US want to use only the seized bitcoin, don't you think that a time will come when some countries will have more bitcoin than the US, and the US wouldn't want that to happen.

https://www.analyticsinsight.net/cryptocurrency-analytics-insight/us-considers-using-gold-reserves-to-buy-bitcoin-heres-what-a-white-house-official-has-to-say

[₿itcoin]

Do you think this move means the U.S. will never dump its BTC again?
And what happens if other countries start doing the same, will this change how Bitcoin’s supply behaves long-term?

If the US really does consider Bitcoin a strategic reserve, I would say it is a huge mental shift indeed. But don not forget that 'yes, Bitcoin is now digital gold' such kind of message does not mean that they wont spread FUD or dump it in the future. Rather, governments are always well known celebrate to change the rules & when a political or budget crisis starts they dont mind taking any decision to stay in power. But yeah I cannot deny, so far this is a bullish signal. The plan to keep 200 k bitcoin as a reserve for the long term is much more reasonable now, because inflation & fiat debt pressures are constantly increasing. And if other countries starts accumulating BTC as reserves, then a huge shortage of Bitcoin supply will start, fewer coins will be floating freely, which makes it unlikely that Bitcoin will ever drop below 100 k. Honestly, this is the beginning of a nation-state FOMO era, which we have all been waiting for

[GEMIN_M4]

Crypto is volatility in nature, believe me this is what they will tell the likes of you when it happened, because truthfully crypto is volatility in nature, atleast they have something they can call the culprit when they take profits, what you don't know is all these hassle of making Bitcoin a strategy reserve is all about making more money, if I am wrong why would they want to clear the US debt with Bitcoin? Be wise.

[Nathrixxx]

I don't think they will dump after some time, we can take for instance from all other countries that have also joined in adoption of bitcoin strategic reserve, people often dump on what they don't see trust in it, while bitcoin has always been consistent about it all.

Another reason to have more confidence in bitcoin is the way it has been increasing in value overtime, it has always been a trusted network under a decentralized blockchain technology, which is immutable, it's strategic reserve is profitable over time as many already perceived to have joined in adoption.

[Satofan44]

The US is considering converting their gold reserve into bitcoin in order to establish a bitcoin reserve for the country. They have plans of buying 200,000 bitcoin in the spread of five years. This shows that they don't want to depend only on the seized bitcoin in their custody for setting a bitcoin strategy reserve. If the US want to use only the seized bitcoin, don't you think that a time will come when some countries will have more bitcoin than the US, and the US wouldn't want that to happen.

https://www.analyticsinsight.net/cryptocurrency-analytics-insight/us-considers-using-gold-reserves-to-buy-bitcoin-heres-what-a-white-house-official-has-to-say

No, they are not. As of today this plan is dead for now. You should pay attention to the article dates. 28 Mar 2025.

Crypto is volatility in nature, believe me this is what they will tell the likes of you when it happened, because truthfully crypto is volatility in nature, atleast they have something they can call the culprit when they take profits, what you don't know is all these hassle of making Bitcoin a strategy reserve is all about making more money, if I am wrong why would they want to clear the US debt with Bitcoin? Be wise.

There should be a warning that you may get a seizure when reading such posts. 

I don't think they will dump after some time, we can take for instance from all other countries that have also joined in adoption of bitcoin strategic reserve, people often dump on what they don't see trust in it, while bitcoin has always been consistent about it all.

It is not that simple, read my posts. You need the other party to also believe that Bitcoin is worthwhile as a reserve and for them to want to keep it as a reserve asset. Only then could you plausibly state that there is a good chance that they will keep it for a long time.

Another reason to have more confidence in bitcoin is the way it has been increasing in value overtime, it has always been a trusted network under a decentralized blockchain technology, which is immutable, it's strategic reserve is profitable over time as many already perceived to have joined in adoption.

A reserve does not need to be very profitable, it merely should not have a very negative performance.

[arzuo]

It can few push up but I think not always uptrend in the market.
Strategic means try to manipulate to grab more BTC btc.
So I think they never only hold it. also more fomo news are coming in the October to December season specially after halving.

As my opinion with 9 years experience ...
The fomo news start same as 2017 and 2021 and it will continue uptrend until 2026 January ( may be touch $200k  few +/-) and then dump again and going to real stable price like $ =70k to 110k