Bessent Rules Out Bitcoin Bailout
Analysis
Price Impact
MedThe us treasury secretary's explicit statement ruling out a bitcoin bailout removes any lingering speculative hope of direct government intervention to prop up the cryptocurrency, which could dampen bullish sentiment.
Trustworthiness
HighThis is a direct statement from the us treasury secretary during a congressional hearing, making it an official and highly reliable source of information.
Price Direction
BearishRuling out a bailout, especially one involving explicit instructions for banks to buy bitcoin or using tax dollars, removes a significant (albeit speculative and unrealistic) potential bullish catalyst. this confirms a hands-off approach from the government regarding direct market support for bitcoin, which could lead to selling pressure from those hoping for such intervention.
Time Effect
ShortWhile the overall policy stance might be long-term, the *clarification* of no bailout can cause an immediate, short-term dampening of speculative buying and potentially trigger some sell-offs from traders who might have been holding out for such an event, even if it was a long shot.
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Article Content:
Cover image via www.youtube.com Read U.TODAY on Google News The underwhelming Bitcoin treasury reserve The GOP push Advertisement Treasury Secretary Scott Bessent has clarified that there will be no Bitcoin bailout. During a recent congressional hearing, Congressman Brad Sherman (D-CA-32) asked Bessent whether or not the Treasury Department actually has the authority to bail out the leading cryptocurrency. Sherman clarified that this would mean banks being explicitly instructed to buy Bitcoin, or US tax dollars being invested to prop up the cryptocurrency HOT Stories Ripple Prime Goes Live on Hyperliquid: Why This Is 'God-Mode' Move for XRP Morning Crypto Report: Dogecoin (DOGE) Rises on Musk's Wealth Record, Ethereum (ETH) Eyes 24% Rally, Cardano (ADA) Dethrones Bitcoin Cash and Hyperliquid From Top 10 Bessent has clarified that the US continues to retain seized Bitcoin. Advertisement The underwhelming Bitcoin treasury reserve After the new administration came to power in late 2024, the expectation was that the US would set up its own Bitcoin reserve. The White House signed an executive order to establish this reserve in May. However, it was extremely underwhelming since it would involve only seized cryptocurrencies. You Might Also Like Thu, 08/14/2025 - 13:03 Bitcoin Price Collapses After Bessent's Most Recent Statement By Alex Dovbnya Advertisement Last August, BTC experienced some volatility after Bessent ruled out Bitcoin purchases during a Fox Business interview. However, he later clarified that the Department of the Treasury did not completely shut the door on future purchases. The GOP push Sen. Cynthia Lummis has reportedly urged Bessent to convert U.S. gold reserves into Bitcoin. Lummis, who initially introduced the Bitcoin reserve bill, recently announced her retirement. The failed bill proposed to fund the purchase of 1 million Bitcoin (roughly 5% of the total supply) without increasing the national debt or adding to the taxpayer burden. Several states (such as Arizona, Utah, and Pennsylvania) are moving forward with their own versions of the Strategic Bitcoin Reserve with varying success. #Bitcoin Price Prediction