Main Points ：
- U.S. Treasury Secretary Scott Bessent stated the government will not buy more Bitcoin for its strategic reserve, pivoting instead to using seized assets.
- Bitcoin price dropped from a record high of $124,457 to below $119,000 on the news.
- The strategic reserve currently holds approximately $15–$20 billion worth of Bitcoin.
- The government will cease selling existing holdings.
- The reserve was created by executive order in March 2025; acquisition remains possible through budget‑neutral strategies.
- Broader context: top Trump appointees hold crypto, and the U.S. reserve has been symbolically framed as a “digital Fort Knox.”
- Legislative and regulatory developments continue around crypto, though the reserve’s details remain somewhat opaque.
1. U.S. Government: No New Bitcoin Purchases, Reserve Grows Through Seizures
Treasury Secretary Scott Bessent told Fox Business that while the U.S. has established a strategic Bitcoin reserve, “We’re not going to be buying that”—instead, the reserve will expand only through assets confiscated from criminal activity. Additionally, he pledged “We’re going to stop selling” any Bitcoin already held.
Later clarification softened the language: although no active purchases are planned for now, Treasury is “committed to exploring budget‑neutral pathways to acquire more Bitcoin”, keeping future acquisition options open.
2. Market Reaction: Bitcoin Slides Below Key $119K Support Level
CoinTelegraph reported that Bitcoin tumbled below the crucial $120,000 support after Bessent’s remarks. It traded around $118,730, after peaking at an all-time high of $124,457 earlier in the day.
3. Reserve Valuation and “Digital Fort Knox” Symbolism
Bessent estimated the U.S. Bitcoin reserve to be valued between $15 billion and $20 billion at current prices. This aligns with descriptions by the White House’s crypto czar, David Sacks, who portrayed the reserve as a “digital Fort Knox”, intended as a long-term store of value.
4. Legal and Political Genesis of the Reserve
In March 2025, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and a separate Digital Asset Stockpile, funded entirely by forfeited crypto assets. No taxpayer money is used, and agencies were directed to account for their digital holdings. The U.S. holds an estimated 200,000 BTC in total reserves.
The order allows for budget-neutral acquisition of more Bitcoin, though no purchases have been made yet.
5. Crypto-Friendly Administration: Policies and Personal Stakes
A Washington Post investigation found that over 20% of high‑level Trump appointees hold significant crypto investments, totaling at least $193 million, including the President’s own crypto-related holdings. These insiders have driven a regulatory approach favorable to crypto, including reduced SEC enforcement and the formation of crypto-friendly infrastructure.
6. Ongoing Policy Developments & Regulatory Framework
A recent Trump-era crypto working group largely omitted discussion of the strategic reserve, instead focusing on regulatory clarity—particularly around stablecoins, self-custody, and DeFi—while opposing central bank digital currencies. Industry reactions were generally positive, even as reserve details remained limited.
7. Summary
- The U.S. will not actively purchase more Bitcoin for its reserve—growth will come exclusively from confiscations.
- Holdings will not be sold, underscoring a long-term value preservation strategy.
- Bitcoin’s price reacted sharply to the news, dipping below key support at ~$119K.
- The strategic reserve, symbolic and substantial, reflects a significant shift in U.S. crypto policy—and one closely aligned with administration insiders’ interests.
