The American strategic reserve, a time bomb?

Bitcoin, this volatile icon of financial markets, may be about to experience a new roller coaster episode. According to a crypto analyst, the approval of a strategic Bitcoin reserve by the US government could disrupt current dynamics. But what really hides this potential surge followed by a fall?

An American strategic reserve: opportunity or threat?

Senator Cynthia Lummis’ proposal to provide the United States with a strategic Bitcoin reserve equivalent to 5% of the world’s supply has sparked heated discussions.

On the one hand, the initiative reflects increased institutional recognition of BTC. On the other, it could amplify turbulence in an already unpredictable market.

According to Ben Simpson, CEO of Collective Shift, this move could lead to an initial surge in price, fueled by investor enthusiasm.

“Bitcoin could skyrocket before coming back down sharply,” he said. This volatility is not trivial: traders often seek to capitalize on major announcements, causing price peaks followed by brutal corrections.

In the short term, such legislation could provide an impressive spectacle for investors, but also confuse their strategies.

Bitcoin dominance in decline, altcoins in ambush

At the same time, Bitcoin faces another challenge: the gradual decline of its dominance in the crypto market. Currently valued at 56.63%, this market share has fallen by more than 7% in one month. For analysts, this trend reflects a growing interest in altcoins, these alternatives to Bitcoin which, little by little, are eating away at their share of the pie.

However, Simpson remains cautious: “The transition to an altcoin season will not be linear. » Investors could face periods of extreme volatility, making it difficult to clearly rotate capital from Bitcoin to altcoins.

Nevertheless, this dynamic highlights a paradigm shift where BTC, once the undisputed king, must now share the stage with more innovative challengers

While Bitcoin may go through some short-term bumps, institutions continue to strengthen their faith in the asset. Bitfinex analysts believe that, despite possible fluctuations, Bitcoin will remain a cornerstone of institutional portfolios. “Even after a decline, bitcoin will still be seen as a credible substitute for gold,” they emphasize.

In short, Bitcoin continues to captivate the markets with its promises of opportunities… and its pitfalls. For savvy investors, every dip could be an opportunity. Meanwhile, Polygon’s future hinges on a key vote.