Why did the price of $XRP suddenly drop this much?
Watcher.Guru initially pointed to an important statement by U.S. Treasury Secretary Scott Bissent, saying: "We will not buy Bitcoin for our government reserves, but we 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: The government stops buying Bitcoin
In a video posted by Watcher.Guru, Secretary Bissent clarified that the U.S. Treasury will not buy more Bitcoin for what is called the strategic reserve. Instead, the government plans to maintain its current holdings of Bitcoin, most of which comes from previous seizures, and will stop selling more.
This announcement directly undermines the narrative that institutional or government buying is what 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 flows and supportive cryptocurrency policies - dropped to around $119,000 as traders absorbed the implications.