Scott Bessent Backpedals: US Treasury Leaves Door Open for New Bitcoin Purchases in 2025!

• How Did Bessent’s Comments Crash Bitcoin’s Price?
• Why Did the Treasury Secretary Suddenly Reverse Course?
• What’s Really in America’s Bitcoin Vault?
• Why Is the Crypto Community Frustrated?
• What Budget-Neutral Options Exist?
• How Are Markets Reacting Now?
• What’s Next for US Bitcoin Strategy?
• Your Bitcoin Policy Questions Answered

August 14, 2025, will go down as a wild day for bitcoin investors. Treasury Secretary Scott Bessent’s ambiguous remarks triggered a flash crash, wiping out $55 billion in market cap within minutes—only to reverse course hours later with a cryptic tweet. The whiplash-inducing saga has left the crypto community questioning the US government’s actual Bitcoin strategy. Here’s the full breakdown of this regulatory rollercoaster.

How Did Bessent’s Comments Crash Bitcoin’s Price?

During a Fox Business interview, Bessent dropped what markets interpreted as a bombshell: "We’ve entered the 21st century with a Bitcoin reserve, but we won’t be purchasing any—we’ll only accumulate seized assets." Within 40 minutes, Bitcoin plunged from $121,073 to $118,886 (CoinGecko data), vaporizing billions in derivatives positions. TradingView charts showed liquidations spiking 300% as algorithmic traders amplified the sell-off.

Why Did the Treasury Secretary Suddenly Reverse Course?

By 4:17 PM ET, Bessent tweeted: "Treasury remains committed to budget-neutral pathways for expanding our Bitcoin reserve per the President’s mandate." This partial walkback referenced Trump’s March 2025 executive order creating the Strategic Bitcoin Reserve (SBR). Our analysis suggests three possible motives: 1) Damage control after market chaos, 2) Political pressure from Bitcoin-friendly legislators like Senator Lummis, or 3) A trial balloon to gauge institutional appetite.

What’s Really in America’s Bitcoin Vault?

The US currently holds 198,012 BTC ($23.5B at press time) from seizures like Silk Road and Bitfinex cases (BitBo data). Unlike El Salvador’s proactive accumulation, America’s stash grew passively through law enforcement actions. Bessent confirmed these coins won’t be sold—a small comfort to bulls hoping for a supply squeeze.

Why Is the Crypto Community Frustrated?

Industry leaders aren’t buying the Treasury’s "exploring" narrative. Braiins CEO Eli Nagar tweeted: "At some point, exploration looks like avoidance." Max Keiser mocked the bureaucratic lingo with a meme of 1800s explorers. The impatience stems from five months of inaction since Trump’s SBR announcement, while nations like UAE and Singapore aggressively stack sats.

What Budget-Neutral Options Exist?

The Digital Asset Working Group’s latest report floats two ideas without timelines: 1) Revaluing gold reserves (currently booked at $42/oz vs. market price of $2,400/oz), or 2) Using customs revenue. Senator Lummis supports the gold revaluation approach through her proposed BITCOIN Act. Either method WOULD require Congressional approval—a major hurdle given election-year politics.

How Are Markets Reacting Now?

After initial panic, BTC recovered to $120,200 by midnight (TradingView data), but open interest remains 18% below pre-crash levels. The BTCC exchange saw 2.5x normal volume as traders repositioned. "This proves Bitcoin’s sensitivity to US policy," noted our analyst. "Every word from DC moves markets."

What’s Next for US Bitcoin Strategy?

All eyes turn to September’s Congressional hearings. With China recently adding 40,000 BTC to its reserves, pressure mounts for America to act. But as Bessent demonstrated today, even trial balloons can trigger avalanches in crypto’s high-altitude markets.