Bitcoin News Today: Bitcoin plummets over 5% after U.S. Treasury reveals lower holdings

Bitcoin prices plunged following comments from U.S. Treasury Secretary Scott Bessent, who clarified that the U.S. government holds significantly less bitcoin than previously estimated—valued at between $15 billion to $20 billion, rather than the $23 billion often cited. The revelation, made during an interview with Fox Business, led to immediate volatility, with the cryptocurrency dropping more than 5% as traders braced for broader implications [1].

Bessent’s remarks came amid a broader reshaping of U.S. cryptocurrency strategy under President Donald Trump, who had previously committed to establishing a “bitcoin superpower” and a strategic reserve. The Treasury secretary clarified that the U.S. would not be using new funds to purchase additional bitcoin for the reserve but would instead rely on previously confiscated assets. This contradicted earlier expectations that the government might expand its holdings via budget-neutral methods, such as selling gold or other assets to fund further acquisitions [1].

The comments were further complicated by Bessent’s subsequent clarification on X, where he emphasized the Treasury’s commitment to exploring ways to expand the reserve, aligning with the president’s vision. However, the initial statement—framed as an off-the-cuff remark—was widely interpreted as a signal of reduced government interest in actively acquiring more bitcoin, fueling short-term bearish sentiment [1].

Estimates of U.S. bitcoin holdings had previously been based on data from analytics firm Arkham Intelligence, which suggested the government held nearly 200,000 bitcoin. The discrepancy highlighted by Bessent raised new questions about the transparency and management of the U.S. crypto stockpile, with some lawmakers expressing concern over potential sell-offs or mismanagement. Senator Cynthia Lummis, a vocal supporter of the strategic reserve, previously warned of a strategic “blunder” if the U.S. had sold off a large portion of its holdings [1].

The market reaction was swift and severe. Bitcoin, which had been surging toward new highs, faced sharp liquidations across futures markets in the 24 hours following the announcement. Data from Coinglass showed traders lost over $803 million in forced liquidations, with Bitcoin and Ethereum seeing the most significant losses [1]. The sell-off was exacerbated by broader macroeconomic concerns, including a stronger-than-expected Producer Price Index (PPI) reading for July 2025, which suggested the Federal Reserve might delay rate cuts [2].

Despite the turbulence, long-term optimism remains. The Crypto Fear & Greed Index currently reads at 75, indicating that risk appetite is still relatively high among investors, with many viewing the dip as a buying opportunity [3]. Bitcoin has historically bounced back from sharp corrections, and while the current volatility is significant, it is not unprecedented.

Looking ahead, the market will closely watch the upcoming August CPI report and any developments in institutional adoption or regulatory policy. For now, however, uncertainty remains, and investors are advised to approach the market with caution.

[1] https://www.forbes.com/sites/digital-assets/2025/08/15/treasury-secretary-reveals-us-bitcoin-surprise-triggering-price-shockwaves/

[2] https://www.hokanews.com/2025/08/crypto-crash-explained-why-market-is.html