U.S. $20 Billion Bitcoin Bet: Treasury Halts Sales as Price Hits Record

• U.S. Treasury Secretary Scott Bessent announced the government will stop selling its $15-20 billion Bitcoin reserve but won’t buy more cryptocurrency.

• Bitcoin hit a new record high of $123,360 before dropping to $117,638 after heavy selling pressure emerged.

• The U.S. Bitcoin holdings come from seized assets through criminal investigations, and the government views them as complementary to gold reserves.

U.S. Treasury Secretary Scott Bessent confirmed the federal government will cease selling its Bitcoin holdings, valued between $15 billion and $20 billion. The announcement marks a strategic shift in how America manages its cryptocurrency reserves. Bessent ruled out new acquisitions for the Bitcoin reserve, stating the government will rely solely on confiscated assets.

The Treasury Secretary’s comments came during a Fox News interview on Thursday. He emphasized the government’s commitment to maintaining its current Bitcoin position rather than expanding it through market purchases. This policy positions the United States as holding one of the world’s largest state-controlled cryptocurrency reserves.

Bitcoin Reaches New All-Time High Before Sharp Correction

Bitcoin reached a fresh all-time high above $123,300 according to Binance platform data, with the price hitting $123,500 as of 1:42 a.m. Moscow time. The cryptocurrency’s surge to record levels preceded Bessent’s policy announcement. Market data shows Bitcoin climbed to $123,360 during early trading sessions.

Bitcoin dropped below the key $120,000 support level following comments from the Treasury Secretary signaling no incoming Bitcoin purchases by the US government. The price retreat wiped approximately 3.52% from the day’s value. Trading platforms recorded the decline to $117,638 after heavy selling pressure emerged.

The cryptocurrency maintains strong annual performance despite the intraday volatility. Bitcoin shows gains of 27.51% year-to-date and 96.39% over the past twelve months. Five-year returns demonstrate the asset’s long-term appreciation at 908.89%.

Government Strategy Focuses on Asset Seizures

The Treasury’s Bitcoin holdings originated primarily from law enforcement seizures rather than direct market purchases. Federal agencies have accumulated cryptocurrency through various criminal investigations over recent years. These confiscated digital assets now form the backbone of America’s strategic reserve.

Bessent addressed the status of traditional gold reserves alongside the Bitcoin announcement. The Treasury will maintain gold holdings as a store of value, but shows no intention to revalue these assets. This dual approach suggests the government views Bitcoin as complementary to established reserve assets.

Congressional advocacy has supported formalizing cryptocurrency reserves. Senator Cynthia Lummis proposed the BITCOIN Act to establish systematic accumulation strategies. Her legislation aims to enhance U.S. financial resilience through diversified digital asset holdings.

The policy announcement reduces potential selling pressure on Bitcoin markets. Eliminating government sales removes a significant source of supply from trading activity. Traders suggest this development could support higher cryptocurrency valuations over time.