Bitcoin fell below a key support level on Thursday after U.S. Treasury Secretary Scott Bessent said that the Government had no plans for further purchases of bitcoins for its bitcoin reserve and digital assets.
fell below the psychological support level of USD 120,000 and was trading at USD 118,730 at the time of writing this article, hours after reaching an all-time high of USD 124,457 on Thursday, according to Cointelegraph data.
The drop occurred following Bessent's comments in an interview with Fox Business, in which he confirmed that the Government would not purchase more bitcoins.
"We have also started to enter the 21st century, with a reserve of bitcoins. We are not going to buy them, but we will use the confiscated assets and continue to accumulate them," said Bessent.
The statement contrasted with a previous executive order from President Donald Trump, which instructed the Government to develop "budget-neutral strategies" to increase bitcoin holdings.
In April, Bo Hines, who was then part of the Presidential Advisory Council on Digital Assets, said that the Administration was exploring funding options for the acquisition of bitcoins, including revenue from tariffs and a reassessment of the Treasury's gold certificates.
The drop on Thursday occurred just hours after bitcoin briefly surpassed Google's market cap of USD 2.4 trillion to become the fifth largest asset in the world, before optimism faded in light of the Treasury's stance.#BTCBreaksATH #Binance $BTC
