Bitcoin retraces to $119K after surpassing its all-time high, driven by comments from the US Treasury Secretary about BTC reserves. Is the bullish fever cooling?
The new all-time high that lasted hours
Bitcoin experienced a historic moment by reaching $124,457, briefly surpassing Google's market capitalization and consolidating as the fifth most valuable asset in the world. However, this milestone lasted little: within hours, the price corrected sharply and fell below $119,000, dragging the crypto market into a scenario of accelerated profit-taking.
The political factor: statements that shook the market
The trigger for this drop was the intervention of Scott Bessent, US Treasury Secretary, who publicly stated that the government does not plan to expand its Bitcoin reserves. These words cooled investors' expectations for greater institutional and governmental adoption of BTC as a reserve asset, a factor that had driven the previous rally.
Immediate impact on market sentiment
• Sales volume: in less than 24 hours, long positions worth over $1.8 billion in futures contracts were liquidated.
• Altcoins under pressure: Ethereum and Solana recorded declines close to 4%, reflecting a widespread sentiment of caution.
• Fear and greed index: it went from 'extreme greed' (87) to 'greed' (72) in just one day.
Technical outlook: healthy correction or warning sign?
Technical analysts agree that the pullback towards $118,500 - $119,200 could be a healthy pullback within a larger bullish trend, as long as the price manages to stay above that key range. If BTC loses this support, the next level of defense would be at $115,000.
Macroeconomic context
The Treasury speech comes at a time when:
• The US dollar strengthens against other currencies.
• The Federal Reserve maintains a restrictive tone to combat inflation.
• The debate over the viability of crypto assets as state reserves is growing.
Conclusion: the market remains bullish, but sensitive
The market's reaction to Bessent's comments confirms that Bitcoin, despite its maturation as an asset, remains highly sensitive to macro and political factors. For investors, the key will be to monitor the support level of $118,500 and institutional behavior in the coming weeks.