US Treasury Secretary Scott Bessent has reversed his position on purchasing Bitcoin for the strategic reserve, opening the door for potential increases.
Plans for Increasing Bitcoin in the Reserve
Scott Bessent announced that the Treasury plans to add more Bitcoin to the Strategic Reserve without using new taxpayer money. New acquisitions would increase government holdings and enhance national influence in international cryptocurrency markets.
Strategic Reserve and Its Contents
The Strategic Bitcoin Reserve was officially created through President Trump's March Executive Order to manage digital assets within the US Treasury, holding only Bitcoin forfeited to the federal government. The reserve is estimated to contain between $15 billion and $20 billion in Bitcoin.
Market Reaction and Bitcoin Pricing
Bitcoin's price, which was around $119,000, dropped from $124,000 after Bessent's announcement. This suggests that even with policy changes, investors remain cautious and are waiting to see future developments.
Bessent's shift in position demonstrates the rapid changes in government policy regarding digital assets and a commitment to cautiously increase government-held reserves.
