Bitcoin fell sharply on Thursday after the American treasury Made it clear that it will not contribute to a planned Bitcoin reserve via new purchases.
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The prices were rather Gerally to an Intraday high near $ 124,120, but traders saw profits upside down and token reverse Until about $ 118,550 later in the session.
Markets were nervous and parts of the crypto futures market saw forced liquidations during the sale.
Treasury excludes new purchases
According to reportTreasury secretary Scott Bessent said Fox Business that the government will not buy an extra bitcoin for the reserve and that future additions will come from confiscated assets.
“We’re not going to buy that,” he said, and he added that the treasury would stop selling “that already checks.
Bessent estimated the current value of the reserve on somewhere between $ 15 billion and $ 20 billion.
The comments are exemptions for an earlier step by US President Donald Trump, who has issued an executive order in which it is requested to grow budget-neutral plans to grow strategic Bitcoin companies.
Only in: 🇺🇸 treasury secretary Bessent says that the US government will not buy Bitcoin “. pic.twitter.com/vl79p531cp
– Watcher.guru (@watcherguru) August 14, 2025
Market reaction and price fluctuations
Based on reports, the sale knew part of Thursday’s profit. One feed showed Bitcoin drop From approximately $ 121,050 to $ 117.201 within an hour, while other data points will place the low point near $ 118,460.
Trade platforms registered a wave of liquidations estimated at around $ 450 million around the same time.
Traders said the sudden shift was driven by the clarity in the policy – investors had priced a possible government purchasing program in earlier optimism, and that the expectation faded after Bessent’s comments.
US Treasury Secretary Scott Bessent said in an interview with Fox: “We’re not going to buy”, referring to Crypto reserves and will be taken instead. He also stated that the value of Bitcoin reserves is around $ 15 billion to $ 20 billion, and that the …
– Wu Blockchain (@wublockchain) August 14, 2025
Macro -economic signals and tariff income
Reports have also announced that Bessent has linked some balance plans to rising tariff collections, saying that July brought nearly $ 30 billion to tariff income.
Bessent suggested that annual rate receptions could surpass an earlier projection of $ 300 billion, a figure that he said could help finance other asset strategies.
The timing of his comments also came when the American data demonstrated that the producer Price Index rose 3.3% on an annual basis and 0.9% month by month before July, figures that contribute to the broader economic background that investors view.
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Seized assets versus direct purchases
The remark of the Minister of Finance that confiscated assets will be used to grow the reserve is shifting the financing model away from direct treasury purchases.
For now, this means that any further increase in the reserve would be gradual and depends on law enforcement repair instead of market purchases.
Market participants said Stance removes a clear, predictable buyer from the market, which can increase price fluctuations over short windows – exactly what traders saw on Thursday.
Featured image of Unsplash, graph of TradingView