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Treasury Chief Backtracks After Market Panic

Treasury Chief Backtracks After Market Panic

CointribuneCointribune2025/08/16 01:35
By:Cointribune

On August 14, ambiguous remarks by Secretary Scott Bessent triggered a mini-crash, wiping out tens of billions of dollars in capitalization within minutes. While investors feared an official renouncement of any BTC acquisition, a backpedal published on the X platform a few hours later sowed even more confusion about the real strategy of the United States.

Treasury Chief Backtracks After Market Panic image 0 Treasury Chief Backtracks After Market Panic image 1

In brief

  • On August 14, an ambiguous statement by Scott Bessent caused a sharp drop in Bitcoin’s price.
  • The U.S. Treasury stated it did not intend to buy Bitcoin, triggering market instability.
  • A few hours later, Bessent reversed his remarks, assuring that purchases remain “budgetarily possible.”
  • Criticism is mounting in the crypto ecosystem, which denounces a lack of action and confusing communication.

A media appearance that sows confusion

It all started this Thursday with an interview given by Treasury Secretary Scott Bessent to Fox Business, in which he made remarks that quickly caused a reaction in the market, while bitcoin had just crossed the $124,000 mark . He notably stated :

“We have also begun to enter the 21st century, with a bitcoin reserve. We are not going to buy any, but we will use seized assets and continue to accumulate them”.

These statements were interpreted as an official renouncement of any active bitcoin purchase by the United States. Such a perception immediately caused a sharp market drop, and the reaction of investors was quick :

  • The bitcoin price dropped from $121,073 to $118,886 within 40 minutes ;
  • $55 billion in market capitalization was erased, according to CoinGecko data ;
  • The domino effect affected the entire crypto market, weakened by this unexpected statement.

Aware of the impact of his remarks , Scott Bessent attempted a backpedal a few hours later on the social network X. He wrote : “the Treasury remains committed to exploring budget-neutral solutions to acquire more bitcoin to expand the reserve, and fulfill the President’s promise to make the United States the world bitcoin superpower”.

This clarification constitutes a partial disavowal of his own earlier remarks during the day and confirms that the option of bitcoin purchases remains officially under consideration, despite the lack of concrete announcement at this stage.

Bessent also recalls that the foundation of the American bitcoin reserve currently consists exclusively of BTC seized during legal proceedings, an approach that does not mobilize public funds.

Slow execution and growing skepticism

Despite Bessent’s clarification, skepticism is setting in. The crypto community is growing impatient with a strategy that seems stalled since the executive order signed by Donald Trump last March 6, establishing the Strategic Bitcoin Reserve and a Digital Asset Stockpile.

The president then paved the way for budget-neutral BTC purchases, excluding any impact on public finances. However, despite five months of consideration, no concrete plan has been revealed. Senator Cynthia Lummis reminded that Congress must approve any direct acquisition, which could explain the Treasury’s caution.

The latest publication of the Digital Asset Working Group, highly anticipated, did not provide a clear answer on the purchase modalities. Among the avenues discussed are a revaluation of gold certificates or the use of customs revenues, but these hypotheses remain theoretical and without a timeline for implementation.

Bessent’s lukewarm response was not enough to reassure sector players. Eli Nagar, CEO of mining company Braiins, reacted strongly : “are you seriously still exploring budget-neutral solutions? At some point, exploring without executing looks like avoidance. Come on, get moving!”.

Max Keiser, Bitcoin advisor for El Salvador, mocked the recurring use of the word “exploration” by the US authorities.

These criticisms reflect a deeper unease. While several states are advancing rapidly in their bitcoin strategy, the United States seems to be stagnating. The possibility of being overtaken in this strategic field is becoming a growing concern.

Despite the absence of additional purchases, Bessent confirmed that the government would stop selling its current bitcoin reserves. He estimates their value between $15 and $20 billion. According to BitBo dashboard data , the United States holds 198,012 BTC, valued at $23.5 billion at current prices. While this decision to hold BTC can be perceived as a positive signal, it does not compensate for the lack of clear vision on future purchases.

Such a sequence highlights the vital importance of clear and consistent communication from the US authorities on crypto issues. As long as the acquisition strategy remains unclear, the United States risks losing the strategic advantage it claims. It remains to be seen whether Congress will play a facilitating role, as was the case for the vote on the Genius Act , or whether it will continue to fuel institutional inertia.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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