- Bitcoin dropped below $120,000 after the U.S. Treasury stated it would not buy more Bitcoin.
- The announcement reversed earlier signals from the administration about growing the federal Bitcoin reserve.
- Bitcoin reached $118,730 following the statement, according to Cointelegraph data.
- The Treasury plans to use only confiscated digital assets for the reserve, not new acquisitions.
- This price drop came after Bitcoin briefly surpassed Google’s market capitalization before market sentiment shifted.
On Thursday, Bitcoin (BTC) fell below $120,000 after the U.S. Treasury said it would not make new purchases for its digital asset reserve. This move followed comments from Treasury Secretary Scott Bessent, made during an interview on Fox Business.
At the time of writing, Bitcoin traded at $118,730, dipping under the key psychological support level. Cointelegraph data tracked the drop, which came shortly after the Treasury clarified its position.
In the interview, Bessent said, “We’ve also started to get into the 21st century, a Bitcoin reserve. We’re not going to be buying that, but we are going to use confiscated assets and continue to build that up.” This statement highlighted a change in policy from earlier signals.
The Treasury’s stance contrasts with an executive order previously issued by President Donald Trump. That directive called for finding “budget-neutral strategies” to increase government holdings of Bitcoin. In April, Bo Hines, then a member of the Presidential Council of Advisers for Digital Assets, said officials considered funding Bitcoin purchases through tariff revenue or changes to how the Treasury uses its Gold certificates.
The price dip happened hours after Bitcoin temporarily overtook Google’s $2.4 trillion market capitalization, becoming the world’s fifth-largest asset before the news affected investor optimism.
This article will be updated as more details become available.
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