Watcher.Guru initially pointed out an important statement from U.S. Treasury Secretary Scott Pesenet, 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 Pesenet clarified that the U.S. Treasury will not buy more Bitcoin for what is called the strategic reserve.
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 of Cryptocurrencies
The market responded quickly. Bitcoin, which previously rose to around $124,000 - a new record due to institutional capital inflows and supportive cryptocurrency policies - fell to about $119,000 as traders absorbed the implications.
Meanwhile, other major coins have followed suit. The price of Ethereum has slightly decreased, while alternative coins, including Ripple, have faced greater downward pressure.
Why Did XRP's Price Drop So Significantly?
As of the time of this report, XRP is trading at around $3.10, down about 4 percent for the day, from its previous peak of around $3.34.
The sharp decline in XRP stems from it 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 move significantly due to sentiment and ETF speculation and regulatory stories, the halt in new demand driven by policies has accelerated profit-taking.
Temporary decline or re-evaluation?
This political announcement removes a key pillar of demand for Bitcoin in the short term, and thus, speculative capital, reducing the risks in the cryptocurrency market.
The volatility of XRP's price may continue until new motivating factors emerge, such as regulatory clarity, ETF approvals, or strong adoption signals.
Meanwhile, the Watcher.Guru video remains a key reference for understanding this dynamic shift in government attitudes towards cryptocurrency reserves.