Bitcoin dipped below the critical $120,000 support barrier on Thursday, trading at the $118k level. The dip occurred just hours after the stock reached a record high of $124,457 earlier that day. The fall followed comments from US Treasury Secretary Scott Bessent, who reaffirmed that the government has no intention to purchase further Bitcoin for its reserve.
Bessent stated that the government will grow its Bitcoin reserve using confiscated assets but will not make any additional purchases. This approach contrasts with President Trump's previous executive order, which encouraged budget-neutral techniques for increasing Bitcoin holdings. Previously, policymakers evaluated several funding possibilities, including tariff revenue and revising Treasury gold certificates.
Despite the dip, Bessent stated that the United States will not sell its present Bitcoin holdings, which he estimated to be worth $15B to $20B. This is consistent with the ideas of White House cryptocurrency officials, who describe the reserve as a "digital Fort Knox" designed to maintain value.
With the US national debt recently surpassing $37 trillion, some investors see Bitcoin as a hedge against inflation and currency devaluation. This increasing financial pressure may help to improve Bitcoin's appeal as a store of value.
