Bitcoin News Today: Bitcoin Falls Below $119,000 After U.S. Treasury Halts New Purchases

Bitcoin dropped below $119,000 on Thursday following remarks from U.S. Treasury Secretary Scott Bessent, who announced the government would not pursue additional purchases of Bitcoin to build a reserve [1]. The statement, made during an interview with Fox Business, clarified the Treasury’s current stance on its Bitcoin holdings, confirming that while no new acquisitions would be made, the government would continue expanding the reserve using confiscated assets [1]. This development came as Bitcoin had briefly surpassed Google’s $2.4 trillion market capitalization to become the fifth-largest global asset earlier in the day [1].

The price decline came amid growing investor scrutiny of government policy toward cryptocurrencies. Bessent’s comments contrasted with previous statements from the Trump administration, including an April announcement that the administration was exploring funding options for Bitcoin acquisitions, such as tariff revenue and a reevaluation of the Treasury’s gold certificates [1]. The shift in tone raised concerns among market participants about potential shifts in public policy and the government’s role in the digital asset space [1].

Despite the pullback, Bessent also signaled that the government had no plans to sell any of its existing Bitcoin holdings, a move that some analysts viewed as a stabilizing factor for the market [1]. His comments echoed earlier statements from White House Digital Assets Advisor David Sacks, who described the Bitcoin reserve as a “digital Fort Knox” that would function as a store of value [1].

The broader market context added to the significance of the Treasury’s position. The U.S. national debt surpassed $37 trillion for the first time earlier in the week, fueling expectations of increased Bitcoin adoption as a hedge against inflation [1]. However, with the government now signaling a pause in its Bitcoin acquisition efforts, investors were left to reassess the strength of the bullish narrative that had supported recent price gains.

Bitcoin’s price action reflected the mixed signals in the market. After reaching an all-time high of $124,457 earlier in the week, the asset experienced a gradual correction, breaking below the $120,000 psychological level [1]. Analysts noted that the drop to $118,730 marked a key support level that would be closely watched in the coming days [2]. While the move triggered short-term volatility, the overall technical setup remained bullish, with Bitcoin trading above key moving averages [4].

The U.S. government’s influence on Bitcoin’s price remains a critical factor in the market. Unlike traditional equities, which derive value primarily from earnings and economic fundamentals, Bitcoin remains highly sensitive to regulatory developments and macroeconomic expectations [5]. The decision to halt new Treasury purchases was interpreted as a signal of fiscal restraint, contrasting with earlier expectations that the administration might continue building a strategic reserve [2].

Despite the pullback, institutional investors and long-term holders continued to add to their positions, suggesting that the broader bullish trend remained intact. The pause in government purchases did not necessarily signal bearish intent but rather a strategic shift in engagement with digital assets [2]. This could provide an opportunity for the market to consolidate before resuming its upward trajectory, particularly if favorable macroeconomic news emerges in the coming weeks [2].

Market observers emphasized that while the U.S. Treasury’s stance was significant, it was only one of several factors influencing Bitcoin’s performance. Broader economic conditions, global liquidity levels, and institutional demand continued to play a crucial role in determining the asset’s direction [5]. Investors remained focused on key economic data, including inflation reports, which could drive broader risk-on or risk-off sentiment across asset classes [2].

Bitcoin’s ability to stabilize around $119,000 would be a critical test of its resilience and the strength of the underlying bullish trend. A successful defense of this level could pave the way for renewed buying interest and a potential return to higher ground. Meanwhile, traders remained watchful for further statements from government officials, as policy clarity continues to be a key driver of market confidence.

Source:

[1] Cointelegraph – [https://cointelegraph.com/news/bitcoin-tanks-below-119k-bessent-gov-t-won-t-buy-bitcoin-reserve](https://cointelegraph.com/news/bitcoin-tanks-below-119k-bessent-gov-t-won-t-buy-bitcoin-reserve)

[2] Investing.com – [https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-falls-to-1186k-as-caution-builds-ahead-of-cpi-data-4184129](https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-falls-to-1186k-as-caution-builds-ahead-of-cpi-data-4184129)

[3] blockscholes – [https://www.blockscholes.com/research](https://www.blockscholes.com/research)

[4] CoinGecko – [https://www.coingecko.com/en/coins/bitcoin/bnb](https://www.coingecko.com/en/coins/bitcoin/bnb)

[5] The Economic Times – [https://m.economictimes.com/crypto-news-today-live-12-aug-2025/liveblog/123243763.cms](https://m.economictimes.com/crypto-news-today-live-12-aug-2025/liveblog/123243763.cms)