On Tuesday, US Treasury Secretary Scott Bessent confirmed plans for the country’s Strategic Bitcoin Reserve (SBR), which coincided with a sharp decline in BTC and the overall cryptocurrency market.
All seized Bitcoin is held in strategic reserve
In a discussion about the government’s approach to BTC and the recent seizures of the cryptocurrency, Bessent says reassured the public that the government would halt all sales of seized Bitcoin.
Instead of auctioning off these assets, the government plans to add the seized Bitcoin to the Strategic Bitcoin Reserve, which was established by President Donald Trump’s administration in March last year.
However, this decision did little to ease BTC’s plummet on Tuesday, as the lack of plans to buy additional coins on the market contributed to continued downward pressure on prices.
Bessent explained that the initiative is part of a broader strategy aimed at promoting digital asset innovation within the United States while maintaining federal oversight of seized cryptocurrencies.
“The policy of this administration is to add seized Bitcoin to our digital asset reserve,” Bessent said, marking a decisive shift in the government’s handling of Bitcoin assets.
Political Climate Leads to $215 Billion Crypto Market Dip
Bitcoin has experienced a drop of almost $5,800, coinciding with political tensions following President Trump hinted at a 10% tariff for the European Union (EU) in an attempt to force Denmark to sell Greenland.
This geopolitical maneuver has not only hit Bitcoin, but has also resulted in a staggering loss of approximately $215 billion in total market capitalization in the crypto sector.
Market analyst Ted Pillows warned that BTC should maintain its position above the $89,000 mark. He said failure to maintain this level would mean the end of the short-term uptrend, further complicating an already tumultuous situation for the cryptocurrency.
At the time of writing, BTC is still above the key $89,497 level outlined by Pillows, but is down 3.7% over the past 24 hours.
Featured image from OpenArt, chart from TradingView.com
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