Bitcoin (BTC): If it crashes, will the US government release money to bail it out?

▲ Bitcoin (BTC), Bear Market, US Government/AI Generated Image

A radical claim has emerged that the U.S. government could appear as the ultimate savior of Bitcoin (Bitcoin, BTC). With Strategy's new capital strategy drawing Bitcoin in as a means of securing liquidity, the argument for government bailouts is no longer completely absurd.

According to crypto-specialized media Stockwitz on July 5 (local time), Chris Irons, author of the Fringe Finance newsletter, stated that a U.S. government bailout of Bitcoin is “no longer completely absurd.” Irons, also known as QTR, presented Strategy's (MSTR) new capital management system as his basis.

Irons pointed out that Bitcoin started as an asset free from governments, central banks, and bailouts. He said, “Fifteen years later, I find myself asking if the last remaining bailout entity for cryptocurrencies could actually be the U.S. government.”

Strategy has established a new capital framework that includes cash reserves, an official dividend policy, and authorization for billions of dollars in share repurchases. It explicitly states that Bitcoin holdings can be monetized and used for dividends, reserves, debt repayment, and share buybacks. Irons commented, “Bitcoin is no longer sacred. It is now part of a liquidity tool.”

He argued that if Strategy sells Bitcoin in a bear market, it could lead to a combination of price drops, asset reduction, and increased demand for liquidity. He explained that if fundraising through stocks, preferred shares, and convertible bonds is blocked, the question of who the final buyer will be arises. Irons said that a bailout of Bitcoin, with a market capitalization of approximately $1.2 trillion, “wouldn't be that expensive” by Washington standards.

However, Irons drew a line, stating that he was not predicting a U.S. government bailout of Bitcoin. He emphasized that politically, it would be close to “suicide” and could be a bailout measure that would provoke the biggest backlash in modern American history. Around the same time, Strategy Chairman Michael Saylor posted a ‘dot chart’ on X (formerly Twitter), hinting at further Bitcoin purchases.

[Article Key Summary]

-Chris Irons argued that a U.S. government bailout of Bitcoin is no longer a completely absurd discussion.

-Strategy explicitly stated that Bitcoin holdings can be used for dividends, reserves, debt repayment, and share repurchases.

-Irons emphasized that he was not predicting a government bailout, stressing that it could politically provoke extreme backlash.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*