OKX executive: Government establishment of Bitcoin strategic reserves may have a negative impact on Bitcoin and the US dollar

ChainCatcher news reports that according to market sources, Haider Rafique, Global Managing Partner of Government and Investor Relations at the cryptocurrency exchange OKX, stated that the government's establishment of a Bitcoin strategic reserve could have negative effects on both Bitcoin and the US dollar. He believes that significant government holdings of Bitcoin could manipulate prices through market sell-offs, undermining the core attributes of Bitcoin's decentralization and neutrality.

Rafique cited the example of the German government's sale of 50,000 Bitcoins in 2024, which led to prices consistently staying below $60,000, pointing out that government policies are subject to change, and new administrations may negate the decisions of their predecessors, bringing about liquidation risks. He further noted that while Bitcoin supporters view national reserves as a key step towards its becoming a global reserve currency, such a move could trigger widespread macroeconomic shocks.

The most direct impact would be to undermine confidence in the US dollar, exposing the weakness of relying solely on economic strength to maintain currency value. Investors may sell off dollars in favor of traditional safe-haven assets like gold or Swiss francs, while also dumping risk assets, leading to a chain liquidation in financial markets and causing significant market declines. He believes that national Bitcoin reserves not only affect the crypto market but could also trigger systemic risks during the transformation of the global financial system.