After hitting a record US$124,457 (AU$191,423) on Thursday, Bitcoin tumbled early Friday to US$117,477 (AU$180,693), according to CoinMarketCap data – a 5% drop in just a few hours. The largest cryptocurrency later pared losses, trading at US$119,226 (AU$183,384), still up 2% on the week.
The pullback coincided with an interview on CNBC in which US Treasury Secretary Scott Bessent said the government would not purchase Bitcoin for its strategic reserves. Although this echoed previous remarks – officials have said they would seek “budget-neutral” ways to add BTC – the reiteration disappointed crypto investors.
TREASURY SECRETARY SCOTT BESSENT SAYS THE U.S. WILL **NOT** BE BUYING ANY BITCOIN
— Walker
THEY WILL HOLD THE $15-$20 BILLION IN BITCOIN THEY ALREADY HAVE AND CONFISCATE MORE
WEIRD, BECAUSE I WAS PROMISED A STRATEGIC BITCOIN RESERVE
MAKES SENSE WHY BO HINES RESIGNED NOW, EH? pic.twitter.com/MGu90xOBqZ(@WalkerAmerica) August 14, 2025
The dip appeared to prompt a follow-up statement from Bessent: “Treasury is committed to exploring budget-neutral pathways for acquiring more Bitcoin to expand the reserve,” he said, adding that the goal remains to “execute on the President’s promise to make the United States the ‘Bitcoin superpower of the world’.”
Jacob King, a prominent crypto commentator with over 500k followers on Crypto Twitter, dismissed the move as “manipulation”, arguing that “the government doesn’t give a damn about Bitcoin”.
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He accused the government of backpedalling, suggesting that “someone in the administration or a major donor clearly whispered in his ear after that interview to soften the market blow”.
Matt Hougan, Chief Investment Officer at Bitwise, said governments remain the missing link in Bitcoin’s institutional adoption. While ETFs and corporates have been active buyers, governments have lagged, he said. The US stance not to accumulate BTC appears at odds with the idea of holding it in public coffers.
Hougan predicts that by year-end some governments will begin adding Bitcoin to their treasuries, potentially driving prices higher. Potential rate cuts, a weaker dollar and money printing could further fuel Bitcoin adoption and cement its status alongside gold as a safe-haven asset.
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The post Bitcoin Slips Below $120K After US Treasury Rules Out Further Purchases appeared first on Crypto News Australia.
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