Bitcoin fell below a critical support level on Thursday after U.S. Treasury Secretary Scott Pasonet stated that the government has no intention of purchasing more Bitcoin.
According to Cointelegraph data, Bitcoin fell below $118,700 on Thursday, dipping below the psychological support level of $120,000.
In an interview with Fox Business, Pasonet confirmed that the government will not purchase any more Bitcoin.
He said: 'We are moving towards a Bitcoin reserve for the 21st century, but we will not purchase more; instead, we will accumulate using confiscated assets.'
Previously, President Trump issued an executive order requiring the government to develop a neutral spending strategy for increasing Bitcoin holdings.
In April, Bo Hines, a member of the then-president's Digital Asset Advisory Council, stated that the government is exploring ways to fund Bitcoin purchases through tariff revenues and reassessing Treasury gold certificates.
After briefly surpassing Google's $2.4 trillion market cap on Thursday, Bitcoin fell back, becoming the fifth largest asset globally, but optimism waned due to the Treasury Secretary's shift in stance.
Related: The corporate frenzy around Bitcoin raises concerns about the nationalization of 'Fort Knox'.
This is an unfolding story, and more information will be updated in due course.
