The Bitcoin National Reserve could shake up the BTC prices and the dollar stability, warns a Crypto manager

The proposal to use Bitcoin (BTC) as a strategic reserve attracts more and more attention, several countries having already added digital currency to their assets. In March, President Donald Trump signed an executive decree to create a Bitcoin strategic reserve in the United States. Although the initiative has received support in certain circles, Haider Rave, a senior manager of the crypto industry, expressed strong reserves. He warned that the establishment of a national BTC reserve could have negative consequences both for cryptocurrency and for the US dollar.

RAFALE warns on the risks of the price of bitcoin

Haider Rafis, partner World Director of Government Relations and Investors at the Crypto OKX platform, warned that a Bitcoin National Reserve could destabilize the market. A sudden sale by a government holding a large part could flood the offer, lower prices and create instability for investors.

He added that Political change increases the riskbecause an administration could support Bitcoin while future could reverse these policies. Any decision of a new administration to sell national reserves could create uncertainty and trigger large -scale liquidations. In a market with a concentrated government reserve, such sales could overwhelm demand and significantly lower Bitcoin prices.

It should be noted that even private investors with large positions attract attention when they sell, so a transaction at the government level would have an even greater impact.

The Crypto leader cited the sale of 50,000 BTC by Germany in 2024. The transaction added a significant amount of bitcoin on the market, which has dropped down prices and maintained Bitcoin under $ 60,000. This shows how actions at state level can influence market trends and slow down prices.

The Bitcoin reserve could undermine confidence in the dollar

RAFALE linked the idea of ​​a bitcoin reserve with the potential consequences for the US dollar. The greatest risk, according to him, is that such a reserve can undermine confidence in the dollar. If global investors perceive it as a sign of dollar weakness, they could move funds to traditional refuge values ​​such as Gold or the Swiss franc.

This type of displacement could put pressure on the risky markets under pressure and trigger waves of sales. According to Rafic, generalized liquidations could ensue, leading to broader financial instability. Thus, a policy designed to strengthen reservations could, on the contrary, weaken the economic system in the broad sense.

The Cato Institute questions the economic relevance of a BTC reserve

The Cato Institute also has criticism the plan earlier this yeararguing that there is a lack of solid economic foundation and is more based on speculation than on practical reasoning. Their concerns highlight several potential problems with a national bitcoin reserve:

• Reducing the national debt with a bitcoin reserve is unreliable because it depends on the rise in the value of the assets and the possible sale of its assets by the government, which would probably cause a negative reaction to BTC supporters.
• The Institute has questioned the comparisons between the BTC and the gold, stressing that a Bitcoin reserve would not strengthen the dollar. Gold has not supported the dollar since 1971, making the idea that Bitcoin can play an unreliable similar role.
• Cato noted that Bitcoin has gained little thanks to government actions, the restrictions on the sale of existing assets preventing additional gains piloted by the government and disappointing the investors who were waiting for them.

While the proposal was well received in certain circles, criticisms underline the potential dangers. For the financial markets as well as for the economy in the broad sense, the costs described by Rafic and Cato raise questions on the effectiveness of a reserve to achieve its planned objectives.