U.S. Treasury’s New Bitcoin Reserve Policy Shakes Crypto Markets

The U.S. Treasury’s new announcement has shaken the crypto markets. The Treasury announced the shift in its approach to Bitcoin(BTC), which sparked an immediate reaction from the crypto market. Scott Bessent, the Treasury Secretary, has revealed that the government will stop selling Bitcoin seized from criminal activities under President Trump’s executive orders. Instead, it will retain these Bitcoins as part of the newly established strategic reserve.

New U.S Treasury Bitcoin Reserve Policy Revealed

Scott Bessent clarified that the U.S. government will not actively purchase any Bitcoin from the market. Instead, it will focus on growing the reserve through the confiscated assets. The strategy’s goal is to explore all “budget-neutral” ways to expand the holdings. This will make a sharp departure from the previous administrations’ practice of liquidating seized cryptocurrency.

This policy reversal signals a broader shift in Washington’s stance toward digital assets. For years, people thought that the U.S. government's sales of seized Bitcoin were pushing prices down. If people decide to hold on to these assets instead, it might change the way that supply and demand work in Bitcoin.

The news shook up the crypto market, causing prices to change quickly as investors adjusted their expectations. Analysts say that this change could affect investors' long-term plans, especially those who think that official approval means that something is real.

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Some traders liked the idea because it showed faith in Bitcoin as a store of value, but others were wary since they didn't know how the reserve would be managed during times of financial stress.

In the past, the U.S. has sold Bitcoin that was taken in criminal investigations, such as the Silk Road takedown. The current reserve method is very different, which suggests that authorities may now see strategic benefits in keeping the asset.

“This is not about buying Bitcoin, but about stopping the selling and building a reserve from confiscated holdings,” Bessent emphasized.

Experts suggest the policy could stabilize Bitcoin prices by removing the selling pressure of large government auctions, while also signaling a more crypto-friendly regulatory environment. If successful, the strategy may serve as a model for other nations considering similar reserves, further integrating Bitcoin into global financial systems.