Bitcoin News Today: U.S. Treasury Halts Bitcoin Purchases Sending Price Below $120,000

The U.S. Treasury has announced it will cease purchasing Bitcoin, triggering a rapid decline in the cryptocurrency’s price. The decision, made public on August 14, saw Bitcoin fall below the $120,000 level shortly after the announcement, marking one of the most immediate and visible market reactions to policy shifts involving the digital asset [1]. The U.S. Treasury Secretary, Scott Bessent, confirmed the move, stating that the government will no longer acquire Bitcoin, and instead will rely on asset seizures to expand its existing crypto reserve [2].

The cessation of government purchases marks a significant departure from earlier strategies where the Treasury had expressed openness to acquiring Bitcoin in a budget-neutral manner. Bessent noted that the current value of the U.S. government’s Bitcoin reserve is estimated to be between $15 billion and $20 billion [3]. The shift in approach reflects broader regulatory scrutiny and a desire to avoid exacerbating market volatility through continued state intervention.

The market responded swiftly to the news, with over $1 billion in liquidations recorded within the first hours of the price drop, as traders adjusted to the new policy landscape. Analysts suggest the sell-off is more indicative of healthy profit-taking than a sign of systemic instability [1]. The price correction follows a period of strong gains, including a surge past $124,000 earlier in the month, fueled by speculation around potential integration of Bitcoin into U.S. retirement and treasury initiatives [2].

The broader cryptocurrency market also experienced ripple effects from the Treasury’s announcement. While Bitcoin faced downward pressure, Ethereum remained relatively stable, indicating a cautious yet resilient market response [4]. The lack of new purchases by one of the largest institutional holders has led to speculation about the long-term implications for government-backed crypto strategies and broader regulatory approaches to digital assets.

Experts remain cautiously optimistic about Bitcoin’s future, noting that key technical indicators still support a bullish case. While the immediate market reaction has been bearish, underlying fundamentals—such as growing institutional interest and the potential for Bitcoin inclusion in retirement vehicles—continue to underpin long-term demand [4].

The U.S. Treasury’s decision highlights the powerful influence that government action can have on cryptocurrency markets. As the market adjusts to this policy change, investors are advised to remain vigilant for further developments and potential regulatory updates that could shape the trajectory of Bitcoin and other major cryptocurrencies in the coming months [5].

---

Source:

[1] (https://m.economictimes.com/crypto-news-today-live-14-aug-2025/liveblog/123288029.cms)

[2] (https://nairametrics.com/2025/08/14/bitcoin-blasts-past-124k-for-the-first-time-amid-u-s-retirement-and-treasury-push/)

[3] (https://www.coinbase.com/en-in/price/bitcoin)

[4] (https://www.investing.com/analysis/the-10-deadly-sins-of-trading-200665321)

[5] (https://ng.investing.com/news/stock-market-news/bullish-opens-at-90-ipo-priced-at-37-halts-immediately-432SI-2061669)