Bitcoin slips as U.S. rules out buying for strategic reserve
Bitcoin slips as U.S. rules out buying for strategic reserve originally appeared on TheStreet.
Bitcoin prices fell sharply on Aug. 14 after U.S. Treasury Secretary Scott Bessent said the government has no plans to purchase additional Bitcoin for its planned strategic reserve, opting instead to rely on confiscated holdings.
Speaking on Mornings with Maria, Bessent’s comments came in response to questions about U.S. gold reserves and whether the government would consider similar moves with Bitcoin.
“I doubt we’re going to revalue it, but we are going to keep it there as a store of value for the American people,” Bessent said when asked if the Treasury planned to revalue gold.
He added that the U.S. has begun incorporating Bitcoin into its strategic reserves, but with a clear caveat. “We’ve also started to get into the 21st century, a Bitcoin strategic reserve. We’re not going to be buying that, but we’re going to use confiscated assets and continue to build that up. We’re going to stop selling that,” he said.
The remarks dampened recent optimism among crypto investors who had speculated that the U.S. might enter the market as a buyer, potentially creating significant demand. Instead, Bessent’s clarification signals that any growth in the reserve will come from seized digital assets — often the result of law enforcement actions against illicit activity — rather than open market purchases.
The decision contrasts with the approach taken by some other nations, such as El Salvador, which has regularly bought Bitcoin as part of its national strategy. Analysts say the U.S. move may limit near-term institutional buying pressure but could still tighten supply if the government permanently holds confiscated coins.
Following Bessent’s interview, Bitcoin slipped from above $118,000 to near $117,000, with broader crypto markets also turning lower.
The crypto market tumbled as over $1.05 billion in leveraged positions were wiped out in 24 hours, with longs losing $778M, per Coinglass. Bybit saw the biggest hit at $447M in liquidations, including a $10M BTC-USD position.
Bitcoin slips as U.S. rules out buying for strategic reserve first appeared on TheStreet on Aug 14, 2025
This story was originally reported by TheStreet on Aug 14, 2025, where it first appeared.
