US Treasury to Expand Bitcoin Reserve with Seized Assets
The US Treasury will expand its Strategic Bitcoin Reserve using seized assets without new spending. Treasury Secretary Scott Bessent first clarified that no new bitcoin purchases were planned, causing a brief market dip. He later explained on social media that the reserve will grow through budget-neutral pathways with $15–20 billion of confiscated coins and that current liquidations will halt. This mixed messaging on the Strategic Bitcoin Reserve sparked volatility—Bitcoin jumped to $124,000 before reversing on hot US inflation data. Traders should monitor future budget-neutral acquisition plans and policy signals, which could influence market supply dynamics and price stability.
Neutral
The halt in Bitcoin liquidations and the introduction of a Strategic Bitcoin Reserve backed by seized assets could reduce supply pressure, but the lack of new government purchases limits immediate upward momentum. Mixed signals from Treasury statements spurred high volatility, suggesting a neutral impact. In the short term, traders may see price swings around policy announcements. Over the long term, a budget-neutral reserve may support Bitcoin’s floor without significantly driving prices higher.