Recent developments have sent ripples through the cryptocurrency landscape as the US Treasury Secretary, Scott Bessent, made headlines regarding the government’s stance on Bitcoin investments.
US Government’s Shift in Bitcoin Strategy
During a recent interview with Fox Business, Bessent clarified that the US government has no intention of acquiring additional Bitcoin for a Strategic Reserve. Instead, he noted the focus will shift towards building reserves using assets that have been seized by authorities.
These confiscated assets are currently valued at approximately $15 to $20 billion. Bessent also mentioned that the government plans to halt the sale of its existing Bitcoin holdings.
The market’s response to this announcement has been quite tumultuous. Bitcoin’s price plummeted to a low of $118,000 after previously reaching a new all-time high (ATH) exceeding $124,000. This volatility has contributed to a broader atmosphere of uncertainty within the crypto sectors.
Data from CoinGlass reveals that traders experienced significant liquidation events amidst the ongoing market instability.
In just 24 hours, liquidations across various cryptocurrencies amounted to an alarming total nearing $1 billion. With Bitcoin and other assets experiencing declines, it is no surprise that long positions, particularly, faced sharp liquidations, with $747 million being closed out.
Breaking down the numbers, Ethereum-related contracts dominated the liquidations at a staggering $312 million. Bitcoin followed, accounting for $214 million in liquidations.
Ethereum’s rise to prominence in liquidation rankings could be attributed to its recent price rally, approaching its all-time high. Other altcoins like Solana (SOL) and XRP have also witnessed substantial liquidations, totaling $66 million and $56 million respectively.
While the US government may refrain from directly acquiring Bitcoin, initiatives under President Donald Trump aim to position the country as the “crypto capital of the world.” In alignment with this vision, the President’s Working Group recently issued the Digital Assets Report, offering valuable insights into cryptocurrency policy.
Various federal agencies are actively engaged in executing this agenda, with entities like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) initiating projects such as Project Crypto and Crypto Sprint.
Current BTC Market Status
At this moment, Bitcoin is trading around $118,200, marking a decline of over 2% in the last 24 hours.
