Bitcoin Recovers as Bo Hines Drops Bitcoin Strategic Reserve News

While Powell played it cool, corporate whales made moves — and the White House just dropped the biggest alpha of the week.

In classic Bitcoin fashion, the market did what it does best this week: ignored the noise and front-ran the narrative.

After a predictably boring and hawkish FOMC meeting, where Fed Chair Jerome Powell gave exactly zero forward guidance and zero reasons to get bullish on rate cuts, Bitcoin shrugged — and then pumped, and then pulled back.

Bitcoin hit $119,000 before pulling back, Source: BNC Bitcoin Liquid Index

The Numbers:

• BTC bounced 3% off local lows post-FOMC
  
• Target back on $119,000, according to several on-chain models
  
• Corporate treasuries snapped up nearly 30,000 BTC in 48 hours
  
• Liquidations across crypto hit nearly $500 million as bears got rekt
  

But forget the usual Fed theater, the real fireworks came courtesy of a surprise cameo from the White House.

The Strategic Bitcoin Reserve

Just as Powell wrapped his carefully scripted statements — inflation still “somewhat elevated,” labor market “solid,” no rate cuts anytime soon — the narrative took a left turn. Enter Robert “Bo” Hines, Executive Director of the President’s Council of Advisers on Digital Assets (yes, that’s a thing now), who casually dropped a bomb in a post-FOMC interview:

“We understand the importance of the strategic Bitcoin reserve… We’re enormous fans of Bitcoin and the Bitcoin community. We want to deliver for them, and I’m certain we will.”

In short: the U.S. is still talking about a national Bitcoin stack.

Think of it as the digital age equivalent of the gold reserves at Fort Knox — only programmable, self-custodied, and globally liquid. If you’re looking for a bullish narrative to cling to in the face of monetary tightening and macro uncertainty, this is it. If you don’t own Bitcoin, then now is the right time to buy Bitcoin.

Meanwhile, Back at the Treasury Desk…

While most traders were still doom-scrolling FOMC hot takes, institutional players were doing something else entirely: buying.

According to Charles Edwards of Capriole Investments, corporate Bitcoin treasuries had one of their largest buying days ever this week — scooping up nearly 30,000 BTC between Tuesday and Wednesday.

“Institutional net buying just breached 97% of all transactions,” Edwards noted. “The last time this happened? August 2020. Those who know, know.”

August 2020, by the way, was just before MicroStrategy made its historic BTC play and opened the corporate floodgates.
If corporate and national treasuries are now both in accumulation mode — and if the available float of BTC is rapidly shrinking thanks to long-term holders and ETFs — where does the price go? Supply squeeze, meet demand shock.
Yes, the Fed is still hawkish. Yes, Powell is pretending not to hear the market begging for cuts. But the geopolitical and monetary chessboard is shifting fast:

• The U.S. dollar is losing influence globally
  
• Central banks are hoarding gold
  
• Sovereign wealth funds are eyeing hard assets
  
• And now, the U.S. is talking about a Bitcoin reserve?
  

So while the mainstream finance crowd continues to obsess over 25 bps here or there, Bitcoin is quietly staging its next move. This is less about a 3% bounce, and more about a paradigm pivot. The smart money is already positioning. The question is, are you?