@efgsetw
A sovereign nation adding Bitcoin to reserves (e.g., the U.S. "Strategic Bitcoin Reserve" ) initially boosts market sentiment, with BTC often rallying 3-5% on announcement. However, the actual impact depends on reserve size and policy consistency. For example, Salvador’s 2021 adoption caused short-term volatility but failed to sustain momentum due to regulatory uncertainty . Long-term, institutionalization enhances legitimacy but risks centralization (8% of BTC now held by governments/institutions ), potentially weakening decentralization narratives.
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