Bitcoin News Today: Bitcoin Tumbles 5.6% as U.S. Treasury Official Sparks Crypto Sell-Off

Generated by AI AgentCoin World
Saturday, Aug 16, 2025 2:31 pm ET1min read
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Aime RobotAime Summary

- U.S. Treasury Secretary Scott Bessent's revised stance on Bitcoin as a reserve asset triggered a $1B crypto sell-off, causing Bitcoin to drop from $124,000 to $117,000.

- Market turbulence wiped out $450M in positions within 14 hours, with Ethereum and altcoins mirroring Bitcoin's price correction amid regulatory uncertainty.

- July PPI data showing persistent inflation intensified macroeconomic concerns, amplifying sensitivity to policy shifts from officials like Bessent.

- Bitcoin rebounded to $119,000 by week's end as BlackRock's $91B Bitcoin ETF highlighted growing institutional legitimacy despite short-term volatility.

- Analysts emphasize policy clarity as critical for crypto markets, with U.S. Treasury guidance shaping price movements amid evolving regulatory frameworks.

Late last week, global crypto markets experienced a sharp sell-off, with nearly $1 billion in liquidations triggered by conflicting signals from U.S. Treasury Secretary Scott Bessent regarding the government’s stance

on holding
Bitcoin
as a reserve asset. The uncertainty led to a rapid drop in Bitcoin’s price, which briefly surged to over $124,000 before retreating to approximately $117,000 within hours. The turbulence rattled retail and institutional traders alike, with over $450 million in positions wiped out in just 14 hours, and more than $1 billion in liquidations recorded in the previous 24 hours [1][4].

The initial volatility emerged as Bessent appeared to backtrack from prior comments suggesting the U.S. could consider allocating a portion of its reserves to Bitcoin. The revised stance sent shockwaves through the market, amplifying fears of regulatory overreach and dampening speculative positions. Bitcoin’s price correction was mirrored by

Ethereum
and a broad basket of altcoins, contributing to widespread losses across major crypto exchanges [1][2].

The timing of the sell-off also coincided with the release of July Producer Price Index (PPI) data, which showed continued inflationary pressure in the U.S., further intensifying concerns over the broader macroeconomic environment for risk assets. As a result, the market reacted with heightened sensitivity to any policy shifts or economic signals, particularly from influential officials such as Bessent [2].

Despite the sharp pullback, Bitcoin showed early signs of recovery, bouncing back to around $119,000 by the close of the week. Analysts noted that while short-term volatility is expected amid unclear regulatory signals, the broader bull case for crypto remains intact, particularly with growing institutional interest. For example, BlackRock’s Bitcoin ETF reached $91.06 billion in assets under management during the same period, highlighting the asset class’s increasing legitimacy in traditional finance [5].

The market’s reaction underscores the growing influence of policy announcements in shaping crypto asset prices. As the U.S. Treasury continues to navigate the regulatory and strategic implications of digital assets, traders are likely to remain on edge, with price movements hinging on clarity in official guidance.

Source:

[1] CoinGape - https://coingape.com/crypto-liquidations-close-to-1b-as-scott-bessent-revises-us-treasury-bitcoin-stance/

[2] Live Bitcoin News - https://www.livebitcoinnews.com/crypto-market-suffers-1b-liquidations-after-ppi-report/

[4] Bitcoin Insider - https://www.bitcoininsider.org/article/283074/us-treasury-bessent-backtracks-btc-reserve-statement-next-crypto-explode

[5] CryptoTimes - https://www.cryptotimes.io/2025/08/15/blackrock-bitcoin-etf-hits-91-billion-aum-as-btc-hits-new-peak/