The post Odds of U.S. Strategic Bitcoin Reserve Plummet on Polymarket – Is BTC Overvalued? appeared on BitcoinEthereumNews.com.

Bettors on the Polymarket prediction marketplace have become increasingly pessimistic about Donald Trump creating a Bitcoin reserve within the first 100 days of his presidency. The prediction market reached a local peak at a 48% chance on January 19, but then swiftly plummeted to a local low of 14%. At the time of writing, bettors are only giving a 16% chance for the US government to add Bitcoin to its reserves before April 29.   Notably, this prediction market doesn’t count confiscated Bitcoin as Bitcoin reserves – the U.S. government would have to purchase Bitcoin for the market to resolve to “Yes”. In an executive order issued on January 23, Trump called for the establishment of a working group on digital asset markets. One of the tasks assigned to this working group is to “evaluate the potential creation and maintenance of a national digital asset stockpile”, and they are expected to deliver the report within 180 days.  Bitcoin’s adoption as a reserve asset could be slower than anticipated Bitcoin is currently within striking range of new all-time highs, and the prospects of BTC being used as a reserve asset by governments across the globe is one of the main bullish narratives driving the market at the moment. However, it’s possible that investors are showing too much enthusiasm, as the timeline for the adoption of Bitcoin by governments could be much longer than anticipated. We can expect plenty of debate in the future surrounding Bitcoin’s suitability as a reserve asset. For example, European Central Bank (ECB) president Christine Lagarde recently made clear that the ECB is not planning to add Bitcoin to its reserves.  JUST IN: 🇪🇺 European Central Bank President Christine Lagarde says Bitcoin will not be included in any EU central bank reserves. “Reserves have to be liquid, secure, safe,…

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Filed under: News - @ January 31, 2025 4:23 pm