Crypto Markets Reel as U.S. Treasury Drops Bombshell: Zero New Bitcoin Purchases Planned

Crypto traders scramble after Treasury's cold shoulder—Bitcoin left off the balance sheet again.

No love for BTC? The U.S. government just doubled down on its digital asset snub, sending shockwaves through trading desks from Miami to Singapore.

Market fallout: Liquidity pools twitch as institutional players recalibrate exposure. Meanwhile, crypto bros insist 'this is fine' while nervously eyeing leverage positions.

Silver lining? At least the Treasury's consistent—their last innovative financial move was probably issuing paper bonds with scissors-and-paste coupons.

Bitcoin Drops From All-Time High

The flagship cryptocurrency plunged from a recordto an intraday low ofon Bitstamp before recovering slightly to around. The nearlyin just hours underscores the extreme volatility triggered by political announcements.

Bessent’s statement abruptly ended weeks of speculation that the U.S. government might continue buying Bitcoin, a narrative that had fueled bullish momentum. The reaction was swift:, including.

suffered even more, withplungingin minutes and briefly falling below the.

Strategic Reserve Hopes Crushed

Until now, the administration had maintained anon expanding the strategic Bitcoin reserve, leaving room for speculation. However, Bessent’s clear rejection closed that door.

Theconsists entirely of with no dedicated budget for fresh acquisitions. This means the government’s bitcoin holdings will remain static, with.

On, betting odds on the U.S. establishing an expanded Bitcoin reserve by 2025 plunged to, a historic low, reflecting a sharp decline in investor confidence in further government involvement.

TREASURY SECRETARY SCOTT BESSENT SAYS THE U.S. WILL **NOT** BE BUYING ANY BITCOIN

THEY WILL HOLD THE $15-$20 BILLION IN BITCOIN THEY ALREADY HAVE AND CONFISCATE MORE

WEIRD, BECAUSE I WAS PROMISED A STRATEGIC BITCOIN RESERVE

MAKES SENSE WHY BO HINES RESIGNED NOW, EH? pic.twitter.com/MGu90xOBqZ

— Walker(@WalkerAmerica) August 14, 2025

$20 Billion in Government Crypto Holdings

Bessent disclosed that U.S. government crypto assets, primarily from seizures, are valued at, making the country thein the world.

While China and the UK also hold significant Bitcoin reserves, strategies differ:to address budget deficits — a stark contrast to the U.S. “hold-only” approach.

A Turning Point for Investors

This announcement signals the end of an era where Bitcoin’s rally was buoyed by. In a single day, sentiment shifted from euphoria to uncertainty.

Traders now face the challenge of recalibrating their strategies, focusing onandas potential growth drivers.

The massive liquidations serve as a reminder that, making caution the new norm.

Although thestill symbolizes America’s intention to maintain influence in the crypto space, its passive stance leaves the market without a key bullish catalyst.

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