Opinion: Unless the U.S. state-level Bitcoin strategic reserve plan is truly implemented, it will be difficult to see a market rise

On January 21, Eugene Epstein, the head of trading and structured products at Moneycorp, said in an interview: "We have experienced cyclical bull markets in cryptocurrencies before, but as far as I remember, this is the first time that hype has really occurred at the government level. So far there has been a lot of talk, but in terms of acceptance, this is still the furthest cryptocurrency has ever gone."

The United States is already the largest sovereign holder of Bitcoin, mainly from judicial seizures. According to Bitbo data, it holds over 200 thousand Bitcoins which are equivalent to nearly $22 billion. Epstein stated that cryptocurrency market transactions are based on expectations that the US will make large purchases in future.

The behavior of governments at all levels buying cryptocurrencies on a large scale has already been digested by the market; if expectations are not met it may retrench: "Unless some kind of state-level plan really starts to be implemented I find it hard to see a rise in market prices - I expect this would be led by Treasury."