- Main event, market disturbance following U.S. decision, key leadership involvement.
- BTC price dipped under $120K post-announcement.
- Focus now on confiscated assets for reserve growth.
On August 14, 2025, U.S. Treasury Secretary Scott Bessent announced that the government will not purchase additional Bitcoin, impacting the market as prices dipped below $120,000.
This decision reflects a shift to grow reserves through asset seizures, significantly affecting Bitcoin’s market stability and investor sentiment.
U.S. Treasury’s New Stance on Bitcoin
Treasury Secretary Scott Bessent’s announcement halts further U.S. Bitcoin purchases. The decision swiftly pushed Bitcoin’s price below $120,000. Scott Bessent announced the change on August 14, 2025, marking a strategic shift supported by President Trump.
Scott Bessent reveals focus on confiscated assets to build Bitcoin reserves. David Sacks, White House AI and crypto czar, supports the move, confirming reserves as a store of value. The administration remains committed to Bitcoin leadership.
“We’ve also started — to get into the 21st Century — a bitcoin strategic reserve. We’re not going to be buying that, but we are going to use confiscated assets and continue to build that up. We’re going to stop selling that.” — Scott Bessent, Treasury Secretary, U.S. Treasury
Immediate Market Reaction
The announcement caused an immediate drop in Bitcoin prices, with values falling from approximately $124,000 to below $119,000. The market reaction was swift, reflecting concerns over the reduced government purchasing activity.
Financial implications include halted direct U.S. Bitcoin acquisitions, focusing instead on increasing the reserve through asset confiscations. This aligns with the strategic objective of maintaining rather than liquidating Bitcoin reserves under newly articulated policies.
Historical Context and Broader Impact
Historical events show a precedent of the U.S. acquiring Bitcoin through legal seizures often leading to market fluctuations. Current policy prohibits selling; ongoing acquisitions fortify Bitcoin’s reserve use.
The impact on cryptocurrency markets and related sectors includes volatility in Ethereum and related altcoins. Market analysis suggests that while direct effects are on Bitcoin, widespread uncertainty affects cryptocurrency stability.
