Treasury Chief Backtracks After Market Panic

On August 14, ambiguous remarks by Secretary Scott Bessent triggered a mini-crash, wiping out tens of billions of dollars in capitalization within minutes. While investors feared an official renouncement of any BTC acquisition, a backpedal published on the X platform a few hours later sowed even more confusion about the real strategy of the United States.

A media appearance that sows confusion

It all started this Thursday with an interview given by Treasury Secretary Scott Bessent to Fox Business, in which he made remarks that quickly caused a reaction in the market, while bitcoin had just crossed the $124,000 mark. He notably stated :

“We have also begun to enter the 21^st century, with a bitcoin reserve. We are not going to buy any, but we will use seized assets and continue to accumulate them”.

These statements were interpreted as an official renouncement of any active bitcoin purchase by the United States. Such a perception immediately caused a sharp market drop, and the reaction of investors was quick :

• The bitcoin price dropped from $121,073 to $118,886 within 40 minutes ;
• $55 billion in market capitalization was erased, according to CoinGecko data ;
• The domino effect affected the entire crypto market, weakened by this unexpected statement.

Aware of the impact of his remarks, Scott Bessent attempted a backpedal a few hours later on the social network X. He wrote : “the Treasury remains committed to exploring budget-neutral solutions to acquire more bitcoin to expand the reserve, and fulfill the President’s promise to make the United States the world bitcoin superpower”.

Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order.

In addition, Treasury is committed to exploring budget-neutral pathways to acquire more…

— Treasury Secretary Scott Bessent (@SecScottBessent) August 14, 2025

This clarification constitutes a partial disavowal of his own earlier remarks during the day and confirms that the option of bitcoin purchases remains officially under consideration, despite the lack of concrete announcement at this stage.

Bessent also recalls that the foundation of the American bitcoin reserve currently consists exclusively of BTC seized during legal proceedings, an approach that does not mobilize public funds.

Slow execution and growing skepticism

Despite Bessent’s clarification, skepticism is setting in. The crypto community is growing impatient with a strategy that seems stalled since the executive order signed by Donald Trump last March 6, establishing the Strategic Bitcoin Reserve and a Digital Asset Stockpile.

The president then paved the way for budget-neutral BTC purchases, excluding any impact on public finances. However, despite five months of consideration, no concrete plan has been revealed. Senator Cynthia Lummis reminded that Congress must approve any direct acquisition, which could explain the Treasury’s caution.

.@SecScottBessent is right: a budget-neutral path to building SBR is the way. We cannot save our country from $37T debt by purchasing more bitcoin, but we can revalue gold reserves to today’s prices & transfer the increase in value to build SBR.

America needs the BITCOIN Act.

— Senator Cynthia Lummis (@SenLummis) August 14, 2025

The latest publication of the Digital Asset Working Group, highly anticipated, did not provide a clear answer on the purchase modalities. Among the avenues discussed are a revaluation of gold certificates or the use of customs revenues, but these hypotheses remain theoretical and without a timeline for implementation.

Bessent’s lukewarm response was not enough to reassure sector players. Eli Nagar, CEO of mining company Braiins, reacted strongly : “are you seriously still exploring budget-neutral solutions? At some point, exploring without executing looks like avoidance. Come on, get moving!”.

Are you seriously still “exploring budget-neutral pathways”? At some point, exploration without execution starts to look like avoidance.

Come on, get moving! https://t.co/YbyXJbVuaW

— Eli Nagar (@EliNagarBrr) August 14, 2025

Max Keiser, Bitcoin advisor for El Salvador, mocked the recurring use of the word “exploration” by the US authorities.

“Exploring” 🤣😂😅 https://t.co/rIY6ilh4u7

— Max Bitcoin (@maxkeiser) August 14, 2025

These criticisms reflect a deeper unease. While several states are advancing rapidly in their bitcoin strategy, the United States seems to be stagnating. The possibility of being overtaken in this strategic field is becoming a growing concern.

Despite the absence of additional purchases, Bessent confirmed that the government would stop selling its current bitcoin reserves. He estimates their value between $15 and $20 billion. According to BitBo dashboard data, the United States holds 198,012 BTC, valued at $23.5 billion at current prices. While this decision to hold BTC can be perceived as a positive signal, it does not compensate for the lack of clear vision on future purchases.

Such a sequence highlights the vital importance of clear and consistent communication from the US authorities on crypto issues. As long as the acquisition strategy remains unclear, the United States risks losing the strategic advantage it claims. It remains to be seen whether Congress will play a facilitating role, as was the case for the vote on the Genius Act, or whether it will continue to fuel institutional inertia.