Bitcoin Tanks 8% After Scott Bessent Drops Bombshell – Here’s Why Traders Are Panicking

Bitcoin's price action just got wrecked by Wall Street royalty. Scott Bessent's latest pronouncements sent BTC into a tailspin – and the crypto markets are feeling the aftershocks.

Why the sudden drop? Bessent's fund, Key Square Capital, holds serious sway in macro circles. When he speaks, hedge funds listen. Today's comments apparently spooked institutional players into profit-taking mode.

The irony? Same whales who pushed Bitcoin to its 2025 ATH are now liquidating positions. Classic buy-the-rumor, sell-the-news behavior from the suits who still don't understand HODLing.

Technical indicators show BTC testing critical support at $48K. Break below that and we could see cascading liquidations. But here's the kicker – retail investors are quietly accumulating at these levels. The smart money might be getting played at their own game.

One thing's certain: When traditional finance titans try to 'predict' crypto markets, they usually get rekt. The only announcement that matters? Bitcoin's next halving.

In brief

• Bitcoin falls below $119,000 after the U.S. Treasury’s announcement to stop buying for its strategic reserves.
• The U.S. Treasury’s decision raises concerns about the future of institutional adoption of bitcoin.

Bitcoin falls rapidly after the U.S. Treasury announcement

Earlier today, bitcoin briefly reached an all-time high of $124,457. At the time of writing this article, the BTC price hasof $120,000.

This drop comes after Scott Bessent, U.S. Treasury Secretary, confirmed that the government would no longer buy Bitcoin for its reserves. The management of bitcoin by the U.S. government is indeed a key market factor, especially with the existence of a strategic BTC reserve.

Certainly, Bessent’s announcement did not lead to massive sales by the government. Nevertheless, it casts a shadow over.

The U.S. position on Bitcoin reserves: what does this mean for the crypto market?

According to crypto analysts, the U.S. strategy of acquiring bitcoin was one of the. Indeed, the government had previously announced it would fund its digital reserves with confiscated assets.

However, this strategy now appears abandoned. This might lead investors to wonder whether financial institutions will continue to regard bitcoin as a SAFE reserve against inflation.

Thecould also indicate a slowdown in the institutional adoption of the cryptocurrency. Especially since more and more people are seeking financial alternatives.

Certainly, Bitcoin’s fall may seem like a temporary setback. That said, this situation highlights the importance of government policy on the crypto’s future. Investors will need to closely monitor future developments around Bitcoin reserves to gauge their impact on long-term prices.

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