Watcher.Guru initially noted an important statement by U.S. Treasury Secretary Scott Bient, stating: "We will not buy Bitcoin for our government reserves, but will rely on seized assets and stop selling." This clip, published by Watcher.Guru on platform X, triggered a rapid shift in cryptocurrency trends.
Shocking Policy: Government Stops Buying Bitcoin
In a video published by Watcher.Guru, Secretary Bient clarified that the U.S. Treasury will not buy more Bitcoin for what's called the strategic reserve. Instead, the government plans to maintain its current holdings of Bitcoin, mostly from previous seizures, and will stop selling more.
This announcement directly undermines the narrative that institutional or government buying drives sustainable demand.
Ripple Market: Widespread Decline in Cryptocurrencies
The market responded quickly. Bitcoin, which had previously risen to around $124,000 - a new record thanks to institutional capital inflows and supportive cryptocurrency policies - dropped to around $119,000 as traders absorbed the implications.
Meanwhile, other major coins followed suit. The price of Ethereum dropped slightly, while alternative coins, including Ripple, faced greater downward pressure.
Why did the price of XRP drop significantly?
As of the time of publishing this report, XRP is trading at around $3.13, down about 4 percent for the day, from a previous high of around $3.34.
The sharp decline in XRP stems from being a speculative alternative coin, not a "store of value" defined by policies like Bitcoin. Market participants rushed to withdraw from riskier investments amid increasing uncertainty.
As XRP prices moved significantly due to sentiment and ETF speculation and regulatory stories, the halt in new policy-driven demand accelerated profit-taking.
Temporary decline or reassessment?
This political announcement removes a key pillar of demand for Bitcoin in the short term, and thus speculative capital, reducing the risks of the cryptocurrency market. The price volatility of XRP may continue until new motivating factors emerge, such as regulatory clarity, ETF approvals, or strong adoption signals. In the meantime, the Watcher.Guru video remains a key reference for understanding this dynamic shift in government positions regarding cryptocurrency reserves.
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