The US Treasury stops selling Bitcoin and shifts focus to holding it as a long-term reserve asset.
The government will not buy more Bitcoin and will only use confiscated coins for the national reserve.
Bitcoin price drops after the new policy but remains strong with major gains over the past year.
U.S. Treasury Secretary Scott Bessent announced that the country’s Bitcoin holdings are valued between $15 billion and $20 billion. These holdings were primarily obtained through asset seizures over recent years. The government has decided to stop selling Bitcoin from its reserve. This change signals a shift in how the U.S. views the digital asset. It can be considered as a long-term strategic asset of financial reserves of the country.
https://twitter.com/SecScottBessent/status/1956080030137626887
The U.S. currently holds one of the largest state-controlled Bitcoin reserves worldwide. The decision to halt sales marks a clear policy shift. It also means reduced selling pressure in the market. This could support Bitcoin’s value, depending on broader market conditions.
No Plans to Buy More Bitcoin
The Treasury confirmed there will be no new purchases of Bitcoin to expand the reserve. The government will continue using confiscated digital assets as the sole source for its Bitcoin reserve. This reserve is separate from other digital assets the U.S. holds.
Bessent noted that the focus will remain on building the reserve using existing forfeitures. He also ruled out acquiring Bitcoin using public funds or other revenue sources. This move contrasts with some congressional proposals. Certain lawmakers have pushed for active Bitcoin accumulation to strengthen the country’s financial resilience.
Policy Reflects Broader Reserve Strategy
Alongside the Bitcoin update, Bessent addressed the role of gold in U.S. reserves. Gold will remain a store of value but will not be revalued. The Treasury aims to maintain a diversified reserve strategy. It continues to support gold while putting more strategic weight on Bitcoin holdings.
The decision shows confidence in blending traditional assets with digital ones. It also positions the U.S. to influence both the global gold and cryptocurrency markets. While gold policy remains unchanged, the growing Bitcoin focus reflects a gradual shift in reserve management.
Market Reacts to Treasury Comments
Bitcoin reached a record high of $124,457 earlier in the day. However, it quickly dropped to $119,339 after Bessent’s comments. The drop erased 3.52% of Bitcoin’s value within hours. The asset then is trading at $119,290
Despite the loss, the price of bitcoin is still 27.51% up this year and 96.39% higher than last year. It has a positive long-term price trend. The recent dip followed months of steady gains. These gains were supported by institutional demand and limited supply. Market reactions reflect sensitivity to government policy changes, especially around Bitcoin reserves.
