Bitcoin News Today: U.S. Treasury Official Confirms No New Bitcoin Purchases for Strategic Reserve

The U.S. Treasury Secretary Scott Bessent has reaffirmed that the federal government will not purchase additional Bitcoin to expand its strategic reserve, despite earlier speculation about potential moves in that direction. Speaking on Fox Business, Bessent clarified the administration's stance, stating that while the government will not be acquiring more Bitcoin through open market transactions, it will continue to build the reserve using cryptocurrency seized from criminal investigations [2].

The announcement came as Bitcoin traded below $120,000, dropping as low as $117,955 in the wake of Bessent’s comments. The broader digital asset market also experienced a nearly 3% decline, with the total market capitalization briefly slipping below $4 trillion [3]. Bessent emphasized that the government’s current Bitcoin holdings—estimated to be between $15 billion and $20 billion in value—will be held as a long-term "store of value," and described the reserve as a “digital Fort Knox” in reference to White House crypto advisor David Sacks [4].

The strategic reserve, which was given legal authority by President Donald Trump in March, has been built from cryptocurrency confiscated as part of criminal investigations. According to Arkham Intelligence, the U.S. government holds up to 198,022 BTC, valued at over $24 billion, though independent estimates vary significantly [7]. Bessent’s remarks represent a departure from earlier reports that suggested the administration was exploring budget-neutral methods to fund new Bitcoin purchases, such as using tariff revenue [5].

Some analysts have questioned whether the government’s decision to refrain from further acquisitions could impact the long-term growth of the reserve. Senator Cynthia Lummis has previously expressed concerns over the trajectory of Bitcoin accumulation by the federal government [6]. However, Bessent made it clear that the administration is not pursuing any such strategy at this time. The focus remains on leveraging seized assets to continue building the reserve, rather than engaging in market purchases.

The market’s reaction has been mixed, with some investors remaining bullish on Bitcoin’s long-term potential, while others have taken a more cautious approach. In addition to Bessent’s comments, the broader crypto market was affected by stronger-than-expected U.S. Producer Price Index (PPI) data, which heightened concerns about inflation and tighter monetary policy [8]. Despite the recent price drop, some analysts believe that long-term demand for Bitcoin could remain strong, particularly in the context of the U.S. national debt, which now exceeds $37 trillion [9].

Bessent’s statements reflect a measured and fiscally conservative approach to the government’s role in the cryptocurrency market. With no indication of immediate purchases, the administration’s strategy appears to prioritize maintaining and managing existing holdings rather than expanding them through active buying. As the market continues to monitor government signals, the Treasury’s position will likely remain a key factor influencing investor sentiment in the months ahead.

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Source:

[1] title: US Treasury Secretary Bessent says government won't buy ...

url: https://www.theblock.co/post/366958/us-treasury-secretary-bessent-bitcoin-strategic-reserve

[2] title: Scott Bessent says Trump administration won't be buying ...

url: https://www.cryptopolitan.com/scott-bessent-us-wont-be-buying-more-bitcoin/

[3] title: The US 'won't buy' more Bitcoin, says Treasury Secretary

url: https://www.dlnews.com/articles/regulation/scott-bessent-says-us-wont-buy-more-bitcoin/

[4] title: US Will Not Be Purchasing Any Bitcoin, Treasury Secretary ...

url: https://decrypt.co/335246/treasury-secretary-bessent-u-s-not-purchasing-bitcoin

[5] title: Treasury Chief Bessent reverses stance, says U.S. will buy ...

url: https://www.msn.com/en-us/money/markets/treasury-chief-bessent-reverses-stance-says-u-s-will-buy-bitcoin/ar-AA1KxR4J?ocid=finance-verthp-feeds

[6] title: Scott Bessent says Trump administration won't be buying ...

[7] title: The Daily: Bessent says govt won't buy bitcoin for strategic ...

url: https://www.theblock.co/post/367040/the-daily-bessent-says-govt-wont-buy-bitcoin-for-strategic-reserve-ethereum-ico-whale-sells-another-5-million-in-eth-and-more

[8] title: Bitcoin drops below $119K after US Treasury secretary ...

url: https://cointelegraph.com/news/bitcoin-tanks-below-119k-bessent-gov-t-won-t-buy-bitcoin-reserve

[9] title: Bitcoin sinks following hotter-than-expected inflation print ...

url: https://finance.yahoo.com/news/bitcoin-sinks-following-hotter-than-expected-inflation-print-bessent-comments-on-strategic-reserve-171107469.html