Treasury to Expand Strategic Bitcoin Reserve with Seized BTC
US Treasury Secretary Scott Bessent announced that seized Bitcoin will form the Strategic Bitcoin Reserve, established under President Trump’s March executive order. Initially, Bessent said no new purchases beyond existing $15–20 billion holdings. He later tweeted that the department is exploring budget-neutral strategies to acquire additional Bitcoin, aiming to position the US as a "world Bitcoin superpower." Following mixed inflation data and Bessent’s comments, BTC fell about 3.7%, sliding from record highs near $124,000 to roughly $118,000. Traders will monitor further Treasury actions and inflation reports for clues on Bitcoin demand and market direction.
Bullish
Treasury’s plan to augment the Strategic Bitcoin Reserve with seized BTC signals potential government-driven demand for Bitcoin. While initial comments and softer inflation data triggered a short-term 3.7% price dip, the renewed commitment underlines stronger long-term support for Bitcoin. Traders may view budget-neutral acquisition strategies as bullish, anticipating sustained demand and reduced volatility from official buying.