Quick Takeaways
- Bitcoin fell below $119K after the U.S. Treasury ruled out new purchases.
- The government will only use assets that have been seized to increase its Bitcoin reserve.
- Hopes sparked by Trump’s earlier pro-Bitcoin stance have cooled — for now.
Bitcoin Slides After U.S. Government Backs Off on Buying More
On Thursday, Bitcoin took a hit, sliding below $119,000, after U.S. Treasury Secretary Scott Bessent made it clear that the government has no plans to buy more Bitcoin anytime soon.
In a live interview with Fox Business, Bessent said the Treasury isn’t looking to expand its Bitcoin reserve through new purchases.
“So in the 21st century, we started going to a bitcoin reserve,” he said. “We are not going to buy it, but we are going to use the seized property and continue to build it.”
That statement landed hard. Until now, there had been growing buzz that the U.S. government might step in as a major buyer of Bitcoin. Instead, Bessent’s remarks shifted the tone completely, and markets reacted right away.
Bitcoin Breaks $120K Support as Confidence Wavers
Just before the announcement, Bitcoin had been flying high — even briefly surpassing Google’s $2.4 trillion market cap to become the fifth-largest asset in the world. That moment of glory didn’t last.
Right after the Treasury’s comments, Bitcoin dropped below its important $120,000 support level, landing at $118,730, according to Cointelegraph data.
Why such a sharp reaction? Many investors had been betting that institutional and government adoption would keep pushing prices higher. However, confidence suffered as Washington now backed down, at least temporarily.
What Happened to Trump’s Bitcoin Play?
This move from the Treasury also seems to go against earlier signals from the Trump administration.
Back in April, President Donald Trump signed an executive order encouraging “budget-neutral” ways to grow federal Bitcoin holdings. His team even floated ideas like using tariff revenues or revaluing old gold certificates to fund purchases.
At the time, it sounded like the U.S. might be getting serious about holding Bitcoin on its balance sheet.
But now? Not so much.
Bessent’s new position marks a shift. Instead of investing fresh funds, the government plans to build its Bitcoin reserve only by using confiscated crypto assets — like those seized in legal cases or investigations.
Therefore, the United States isn’t entirely leaving the game, but it’s also not throwing caution to the wind.
The Implications for Bitcoin Moving Ahead
Bitcoin is currently in a waiting period. On the one hand, traders who were counting on widespread government assistance may find that the Treasury’s decision slows short-term momentum.
On the other hand, Bitcoin remains a global asset — and interest from international investors, private institutions, and even tech giants hasn’t gone anywhere.
In other words, just because the U.S. is hitting pause doesn’t mean the rest of the world will.
Bitcoin doesn’t remain down for very long, if history is any indication. But for the time being, it’s evident that Washington headlines still have the ability to cause a stir.
