Haider Rafique, Global Managing Partner at OKX, has expressed concerns over governments establishing strategic Bitcoin reserves, warning of potential negative impacts on both Bitcoin and the US dollar. Rafique argues that large government holdings could manipulate Bitcoin prices through market sell-offs, undermining its decentralization. He cited Germany's 2024 sale of 50,000 Bitcoins, which kept prices below $60,000, as an example.
Rafique also highlighted the volatility of government policies, noting that new administrations might reverse previous decisions, risking liquidation. He warned that national Bitcoin reserves could trigger macroeconomic shocks, shaking confidence in the US dollar and prompting investors to shift to traditional safe-haven assets like gold. This could lead to significant market declines and systemic risks in the global financial system.
OKX Executive Warns of Risks in Government Bitcoin Reserves
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