Bitcoin fell sharply Thursday after the US Treasury made clear it won’t add to a deliberate Bitcoin reserve by way of new purchases.
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Costs had earlier rallied to an intraday excessive close to $124,120, however merchants noticed beneficial properties reverse and the token backpedaled to round $118,550 later within the session.
Markets have been jittery, and components of the crypto futures market noticed pressured liquidations throughout the sell-off.
Treasury Guidelines Out New Buys
In response to reviews, Treasury Secretary Scott Bessent informed Fox Enterprise the federal government won’t be shopping for extra Bitcoin for the reserve and that future additions will come from confiscated property.
“We’re not going to be shopping for that,” he mentioned, and he added the Treasury would “cease promoting” holdings it already controls.
Bessent estimated the reserve’s present worth at someplace between $15 billion and $20 billion.
The feedback stand in aid to an earlier transfer by US President Donald Trump, who issued an govt order asking for budget-neutral plans to develop strategic Bitcoin holdings.
JUST IN: 🇺🇸 Treasury Secretary Bessent says the US Authorities is “not going to be shopping for” Bitcoin. pic.twitter.com/vL79P531CP
— Watcher.Guru (@WatcherGuru) August 14, 2025
Market Response And Value Swings
Primarily based on reviews, the sell-off erased a bit of Thursday’s beneficial properties. One feed confirmed Bitcoin drop from about $121,050 to $117,201 inside an hour, whereas different knowledge factors put the low close to $118,460.
Buying and selling platforms recorded a wave of liquidations estimated at roughly $450 million across the identical time.
Merchants mentioned the sudden shift was pushed by the readability in coverage — traders had been pricing a potential authorities buyback program into earlier optimism, and that expectation light after Bessent’s remarks.
U.S. Treasury Secretary Scott Bessent mentioned in an interview with Fox, “We aren’t going to be shopping for,” referring to crypto reserves, and can as an alternative use seized property. He has additionally acknowledged that the worth of Bitcoin reserves is about $15 billion to $20 billion, and that the…
— Wu Blockchain (@WuBlockchain) August 14, 2025
Macroeconomic Alerts And Tariff Income
Reviews have additionally disclosed that Bessent linked some balance-sheet plans to rising tariff collections, saying July introduced almost $30 billion in tariff revenues.
Bessent steered annual tariff receipts may prime a earlier projection of $300 billion, a determine he mentioned may assist fund different asset methods.
The timing of his feedback additionally got here as US knowledge confirmed the Producer Value Index rising 3.3% year-on-year and 0.9% month-on-month for July, numbers that add to the broader financial backdrop traders are watching.
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Confiscated Belongings Versus Direct Purchases
The Treasury secretary’s word that confiscated property will likely be used to develop the reserve shifts the funding mannequin away from direct Treasury buys.
For now, which means any additional enhance within the reserve could be gradual and depending on regulation enforcement recoveries fairly than market purchases.
Market individuals mentioned that stance removes a transparent, predictable purchaser from the market, which might make value swings bigger over quick home windows — precisely what merchants noticed on Thursday.
Featured picture from Unsplash, chart from TradingView