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Bitcoin falls after Scott Bessent's announcements

21h05 ▪ 3 min read ▪ by Ariela R.
Getting informed Bitcoin (BTC)

Bitcoin has just fallen below $119,000. Enough to surprise many investors. This drop follows the statements of Scott Bessent, U.S. Treasury Secretary. According to some crypto analysts, these same statements could have long-term consequences on the crypto asset market. More details below!

A Bitcoin character in a costume falls under a dramatic flash of lightning

In brief

  • Bitcoin falls below $119,000 after the U.S. Treasury’s announcement to stop buying for its strategic reserves.
  • The U.S. Treasury’s decision raises concerns about the future of institutional adoption of bitcoin.

Bitcoin falls rapidly after the U.S. Treasury announcement

Earlier today, bitcoin briefly reached an all-time high of $124,457. At the time of writing this article, the BTC price has dropped below the psychological threshold of $120,000.

This drop comes after Scott Bessent, U.S. Treasury Secretary, confirmed that the government would no longer buy bitcoin for its reserves. The management of bitcoin by the U.S. government is indeed a key market factor, especially with the existence of a strategic BTC reserve.

Certainly, Bessent’s announcement did not lead to massive sales by the government. Nevertheless, it casts a shadow over short-term prospects for the flagship cryptocurrency.

The U.S. position on Bitcoin reserves: what does this mean for the crypto market?

According to crypto analysts, the U.S. strategy of acquiring bitcoin was one of the main drivers of optimism. Indeed, the government had previously announced it would fund its digital reserves with confiscated assets.

However, this strategy now appears abandoned. This might lead investors to wonder whether financial institutions will continue to regard bitcoin as a safe reserve against inflation.

The decline in bitcoin strategic reserves could also indicate a slowdown in the institutional adoption of the cryptocurrency. Especially since more and more people are seeking financial alternatives.

Certainly, Bitcoin’s fall may seem like a temporary setback. That said, this situation highlights the importance of government policy on the crypto’s future. Investors will need to closely monitor future developments around Bitcoin reserves to gauge their impact on long-term prices.

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Ariela R. avatar
Ariela R.

My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.