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US Signals Tough Road Ahead for Bitcoin Reserve Amid Market Speculation

Recent speculation surrounding the U.S. government's potential for a bitcoin reserve has been fueled by comments from financial commentator Jim Cramer, but there's no substantial backing for these claims.

Despite President Trump's intentions to establish a strategic reserve for bitcoin, the actual framework for purchasing and holding cryptocurrencies is nonexistent.

Confusion arose when Cramer suggested that the White House might act if bitcoin prices fell to $60,000, igniting excitement in the markets.

Currently, no legislation supports the creation of a reserve, and negotiations in Congress are focused on more pressing regulatory issues.

The Treasury Department has acknowledged that the government's bitcoin holdings may be around $23 billion, but procedures for establishing a reserve remain unclear.

Additionally, financial authorities, including Treasury Secretary Scott Bessent, have explicitly stated that the government lacks the authority to support bitcoin financially.

As the federal landscape remains stagnant, several U.S. states have actively sought to establish their own bitcoin reserves, revealing a disconnect between state and federal efforts.

In related news, China’s directive for banks to reduce U.S. Treasury holdings may divert investor attention towards cryptocurrencies.

Experts suggest this shift could create new buying opportunities for bitcoin, as investors seek alternative assets amid increasing market volatility.

With current prices around $69,712, many view this as a favorable entry point for long-term investment in bitcoin and other cryptocurrencies.