TL;DR
- Bitcoin fell from a record-high near $124.5K to under $119K after the Treasury said no new government BTC buys are planned.
- Bessent said the U.S. will lean on seized assets to grow its crypto reserve and stop selling current holdings valued at $15–$20 billion.
- The Strategic Bitcoin Reserve, created by Trump in March, now operates purely on seized assets.
- Market jitters show how policy signals can still rock price swings.
Bitcoin tumbled under a key $120,000 support level on Thursday-trading around $118,730-just hours after briefly touching an all-time high near $124,457. The decline followed comments by Treasury Secretary Scott Bessent during a Fox Business interview, where he confirmed that the government will not be buying new Bitcoin to fund its digital asset reserve.
He also estimated the current holdings at between $15 billion and $20 billion-financed entirely through seized crypto .
From Bold Plans to Reality: The March Executive Order
To understand the context, here's how this came to be: on March 6, President Trump signed an executive order officially establishing a Strategic Bitcoin Reserve and a broader Digital Asset Stockpile, both intended to be filled with seized crypto, not purchased outright.
The idea was to treat crypto the way governments treat gold or oil reserve assets that add a layer of financial flexibility. In theory, agencies would transfer forfeited Bitcoin to the reserve, and the Treasury would manage it with safeguards and legal oversight. But now, as Bessent says, that’s exactly how it’s being handled: no new buys, just holding tight.
Market Reaction: Fast Moves on Thin Notice
Bitcoin's crash below $119K shows how quickly markets respond to policy shifts-even subtle ones. Traders had just bid the price to a record high; the sudden pivot created a mini-storm. Shifting from hopeful expectations of fresh government demand to "no buys" looked like a canned expulsion of fresh fuel from a sizzling rally.
While markets moved fast, Bessent's policy comes across as more cautious than bullish. Rather than backing the rally with new purchases, the U.S. is walking back-choosing a steady, legally grounded path. Stopping sales and centralizing the reserve makes the BTC cache more predictable and defensible over time. It's less about stirring hype and more about building credibility.
Broader Policy Context
This follows a broader trend under the current administration, crypto has become part of national strategy. The executive order, the crypto summit, and new working groups all point to a more open stance than previous years.
There’s also regulatory momentum: the push for clarity around stablecoins, retail crypto products, and custody standards continues. Still, lawmakers haven’t handed over new funding to grab crypto, plans remain symbolic, structured, and cautious.
Final Thought
This is the kind of story that proves price swings aren't always about hype, pattern or tech. Sometimes, it's simpler: money reacts when policy speaks. The promise of a “strategic reserve” remains appealing but stalled and that’s okay. Bessent’s message: the U.S. will guard what’s already been collected, not chase more. As markets digest that, price finds itself in a quiet zone, still driven by broader economic bets, not government buying.
