Coinbase News: US Government Establishes Strategic Bitcoin Reserve to Alleviate Market Sell Pressure

In a significant development for the cryptocurrency market, the US government has taken a bold step to stabilize Bitcoin prices by establishing a Strategic Bitcoin Reserve. Here’s a detailed look at what this means for investors and the market as a whole.

US Government Establishes Strategic Bitcoin Reserve to Curb Market Sell Pressure

The US government has decided to establish a Strategic Bitcoin Reserve, which could significantly ease market sell pressure by up to $18 billion. According to a March 7 post by Coinbase executive Conor Grogan, federal authorities currently hold around 198,109 BTC. A new directive prevents the liquidation of these holdings, effectively removing $18 billion in potential sell-side pressure. On March 6, US President Donald Trump signed an executive order ensuring that Bitcoin deposited into the reserve will not be sold but will serve as a store of value, akin to a “digital Fort Knox”. This policy shift follows concerns raised by White House AI and Crypto advisor David Sacks, who argued that the US government may have lost out on significant funds by offloading Bitcoin in the past.

Coinbase Acquires Iron Fish Team for Privacy Boost on Base

Coinbase has acquired the team behind Iron Fish, a privacy-focused blockchain project, to enhance privacy features on its layer 2 network Base. The deal excludes the Iron Fish blockchain and token, which will operate independently. Key developers, including CEO Elena Nadolinski and Jason Spafford, will form a new privacy-focused team within Base, aiming to develop privacy-preserving tools. Coinbase emphasizes that privacy is a CORE building block and not optional. The Iron Fish Foundation will oversee the independent operation of the Iron Fish blockchain and token.