Bitcoin Price Dips as Treasury Halts Reserve Purchases
Bitcoin plunged from a record intraday high near $124,000 to around $117,700 after US Treasury Secretary Scott Bessent announced no new purchases for the Strategic Bitcoin Reserve, relying solely on seized assets valued at $15–20 billion and halting sales of existing holdings. This shift, at odds with an earlier executive order to build a budget-neutral reserve using roughly 198,000 confiscated BTC, removed a predictable buyer and triggered forced liquidations exceeding $450 million. Hotter-than-expected July PPI data (0.9% annual gain) and nearly $30 billion in tariff revenues compounded selling pressure, sparking a broader crypto sell-off across ETH, XRP, SOL and DOGE. Traders warn that reduced government demand may amplify price swings and volatility in the short term.
Bearish
The Treasury’s decision to halt new BTC purchases removes a major source of consistent demand, triggering forced liquidations and a swift drop in Bitcoin prices. Combined with hotter-than-expected inflation data that spurred broader crypto sell-offs, this development is likely to keep near-term sentiment negative and heighten volatility. In the long term, reliance solely on seized assets may cap upside and maintain uncertainty over government buying power, suggesting subdued price momentum unless policy reverses or new catalysts emerge.