Bitcoin fell sharply Thursday after the US Treasury made clear it is not going to add to a deliberate Bitcoin reserve by new purchases.
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Costs had earlier rallied to an intraday excessive close to $124,120, however merchants noticed positive factors reverse and the token backpedaled to round $118,550 later within the session.
Markets have been jittery, and elements of the crypto futures market noticed pressured liquidations throughout the sell-off.
Treasury Guidelines Out New Buys
Based on reports, Treasury Secretary Scott Bessent instructed Fox Enterprise the federal government is not going to be shopping for further Bitcoin for the reserve and that future additions will come from confiscated belongings.
“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 reduction 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 Worth Swings
Primarily based on studies, the sell-off erased a piece of Thursday’s positive factors. One feed confirmed Bitcoin drop from about $121,050 to $117,201 inside an hour, whereas different information factors put the low close to $118,460.
Buying and selling platforms recorded a wave of liquidations estimated at roughly $450 million across the similar time.
Merchants mentioned the sudden shift was pushed by the readability in coverage — buyers 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’re not going to be shopping for,” referring to crypto reserves, and can as a substitute use seized belongings. 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 Indicators And Tariff Income
Stories have additionally disclosed that Bessent linked some balance-sheet plans to rising tariff collections, saying July introduced practically $30 billion in tariff revenues.
Bessent steered annual tariff receipts might high a earlier projection of $300 billion, a determine he mentioned might assist fund different asset methods.
The timing of his feedback additionally got here as US information confirmed the Producer Worth Index rising 3.3% year-on-year and 0.9% month-on-month for July, numbers that add to the broader financial backdrop buyers are watching.
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Confiscated Belongings Versus Direct Purchases
The Treasury secretary’s word that confiscated belongings might 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 can be gradual and depending on legislation enforcement recoveries quite than market purchases.
Market individuals mentioned that stance removes a transparent, predictable purchaser from the market, which may make worth swings bigger over quick home windows — precisely what merchants noticed on Thursday.
Featured picture from Unsplash, chart from TradingView