On August 15, Yellen made a thought-provoking statement indicating that the U.S. government will not increase Bitcoin purchases at this time, while also emphasizing that "the expansion of the strategic reserve plan has not been terminated." This seemingly contradictory statement carries deep meaning.

In the short term, this news has had a certain impact on the market. Previously, the market generally expected that the United States would follow other countries by using government bonds to buy Bitcoin to hedge against inflation. However, as soon as the news of pausing further purchases came out, the price of Bitcoin fell by 5%, leading to more than $200 million in long contract liquidations.

From a long-term perspective, the strategy of the US government may have far-reaching implications. It is worth noting that the US government still holds 210,000 Bitcoins. Furthermore, the previously signed executive order has established a "National Strategic Bitcoin Reserve". If policy loosens in the coming years, this batch of assets known as "digital gold" could become a key factor in triggering a new bull market.

This delicate balance demonstrates the government's trade-off between short-term market stability and long-term strategic layout. While current decisions may trigger short-term fluctuations, the United States appears to be preparing for the future landscape of digital currencies in the long run. Investors and market participants need to closely monitor policy directions, as any subtle changes could have far-reaching effects on the cryptocurrency market.