Bitcoin plunged just hours after hitting a historic peak. Photo: Reuters.
Early morning of August 15 (Vietnam time), Bitcoin fell below the important support threshold of 120,000 USD, trading around 117,000 USD.
Bitcoin's sudden "reverse" came just hours after reaching a historic peak of $124,457, previously fueled by expectations of a Fed rate cut and a series of support policies.
Currently, the price of the world's largest digital currency has recovered to around $118,000.
Bitcoin plummeted in the early morning of August 15 (Vietnam time). Photo: CoinMarketCap.
Notably, the decline came shortly after US Treasury Secretary Scott Bessent confirmed on Fox Business that Washington would not be buying more Bitcoin for its strategic reserves.
" We started the 21st century with a reserve of Bitcoin. We will not buy more, but we will take the seized assets and continue to add to it, " he said.
Previously, on March 6, President Donald Trump signed an executive order establishing a separate Bitcoin strategic reserve and digital asset reserve, initially using cryptocurrencies seized from criminal cases. The executive order also paved the way for the US Treasury Department to buy more Bitcoin under a "budget neutral" strategy to avoid increasing the cost burden on taxpayers.
In March, Mr. Bessent called for a change in the strategy for managing Bitcoin reserves, proposing that the government stop selling confiscated Bitcoin and “repatriate” it according to the current legal framework. He said that after compensating victims of financial fraud, the remaining Bitcoin would be added to the national reserve, helping the US solidify its global leadership in digital currencies.
In April, Mr. Bo Hines, then a member of the President's Advisory Council on Digital Assets, revealed that the US government was considering options to raise capital to buy Bitcoin, including revenue from tariffs and re-evaluating the Treasury Department's gold certificates.
Notably, Thursday's drop came just hours after Bitcoin surpassed Google's $2.4 trillion market cap to become the world's fifth-largest asset, before the euphoria cooled off following the Treasury Department's cautious stance.
However, Mr. Bessent affirmed that the US will not sell its existing Bitcoin. " We will stop selling. I believe the value of the current Bitcoin reserve is about 15-20 billion USD ," he added.
This view is similar to the opinion of David Sacks, senior White House advisor on AI and cryptocurrencies, that the Bitcoin reserve will be a "digital Fort Knox" and the US will keep its holdings as a store of value.
With the US national debt just surpassing $37 trillion for the first time, many investors expect Bitcoin to continue to set new records, benefiting from expectations of increased money supply as the government seeks to deal with the debt burden and boost economic spending.
Source: https://vtcnews.vn/bitcoin-bat-ngo-lao-doc-sau-khi-pha-dinh-lich-su-ar959934.html
Comment (0)