Emily Walker
Amid discussions about the possibility of Donald Trump establishing a strategic Bitcoin reserve in the United States, a prominent crypto analyst has outlined several crucial developments that must occur for this to become a reality. The analyst’s perspective particularly emphasizes figures like Ross Ulbricht, the creator of Silk Road, and the involvement of US marshals in handling the seized Bitcoin assets.
Timing of the US Bitcoin Reserve Announcement
A crypto analyst known as ‘Bio99’ on X (formerly Twitter) argues that Ulbricht’s recent release from incarceration is a vital initial step towards the establishment of a Bitcoin reserve. In Bio99’s opinion, Trump could not responsibly initiate a Bitcoin reserve without first confronting the origins of a significant portion of Bitcoin held by the government, notably stemming from Silk Road-related seizures.
For reference, Ulbricht founded the Silk Road marketplace in 2011, facilitating the trade of illegal goods—predominantly drugs—through Bitcoin. The authorities apprehended him in 2013, thereby shutting down Silk Road.
At the time of Ulbricht’s arrest, about 26,000 BTC, valued at over $3.5 million, was seized by the US. Additionally, in 2020, the US Department of Justice confiscated another 69,370 BTC. Post-seizure, some of the Bitcoin linked to Silk Road was auctioned off while Ulbricht faced multiple convictions resulting in a life sentence without parole, with many questioning the fairness of his punishment and calling for his release.
Bio99 emphasized that before the US can completely assume control over Silk Road’s Bitcoin, Ulbricht’s release is necessary. This, according to the analyst, can’t occur until Trump addresses the situation of those accused in the January 6 insurrection. The pundit argues public backlash would be inevitable if the government were to exploit Ulbricht’s Bitcoin assets while he remains imprisoned.
Bio99 outlined several other prerequisites for Trump to proclaim a Bitcoin reserve. These include halting government recruitment, addressing illegal immigration, and advocating for advancements in new technologies. The analyst posits that once these foundational actions are enacted, the possibility of developing a Bitcoin Reserve could soon be on the horizon.
Future Steps: AI Investments and Repeal of SAB
Bio99 has characterized Bitcoin as a crucial asset linked to the US dollar, Treasury, and stock market. The analyst points out that Trump’s recent push for investments in Artificial Intelligence (AI) and other innovative technologies lays the groundwork for wider acceptance and the forthcoming announcement of a Bitcoin Reserve in the United States.
Further speculation ties in Elon Musk, CEO of SpaceX and Tesla, referencing his recent lack of public commentary on Bitcoin alongside discussions regarding the release of Ulbricht and the January 6 defendants. Additionally, the anticipated final action would be the repeal of the Securities and Banking Act (SAB), which would allow banks and businesses to establish their own reserves.