U.S. Treasury Halts Bitcoin Purchases, Price Drops Below $120K

The U.S. Treasury has officially announced it will no longer buy Bitcoin, significantly influencing the cryptocurrency market. This decision caused an immediate drop in Bitcoin’s price, which fell below $120,000 within minutes of the announcement.

Scott Bessent, the current U.S. Treasury Secretary, confirmed the government’s reliance on asset confiscations to expand its crypto reserve rather than new market purchases. This marks a shift in the government’s earlier position advocating accumulation. Bessent noted, “We’re going to stop selling. I believe that the Bitcoin reserve at today’s prices is somewhere between $15 billion and $20 billion.”

The Treasury’s announcement had a ripple effect across the cryptocurrency market, with major coins like Ether also seeing significant declines. Traders and institutions responded quickly to the change, impacting liquidity in major protocols.

This policy change underscores a strategic posture shift, halting prior plans discussed by officials to acquire Bitcoin for budget-neutral purposes. The market volatility reflects participants’ concerns over potential further government asset reallocations.

Experts speculate on potential outcomes for future crypto policies and market stability. The halt in purchases may affect future government strategies. Market participants are advised to stay informed on possible regulatory updates arising post-announcement.

The U.S. Treasury’s policy shift influences both market speculation and long-term expectations for digital asset management. Historical trends suggest government actions can have prolonged effects on market dynamics. Future acquisitions via seizure present different potential implications for stakeholders.