Recent comments from U.S. Treasury Secretary Scott Bessent regarding the halt of Bitcoin purchases have caused significant shifts in the cryptocurrency market.
Treasury Secretary's Statement
In remarks shared by Watcher.Guru, Secretary Bessent clarified that the U.S. government will not be acquiring additional Bitcoin for its strategic reserve. Instead, the focus will be on preserving existing assets, primarily obtained through confiscations, and ceasing further sales.
Market Reaction to the News
The markets reacted swiftly. Bitcoin, which had spiked to a new all-time high of around $124,000, fell back to approximately $119,000. Other major coins, including Ethereum, also experienced declines, while XRP faced sharper downturns.
XRP Price Drop and Its Reasons
As of the report time, XRP was trading at approximately $3.13, down nearly 4% from previous highs above $3.34. This steeper decline can be attributed to XRP's status as a speculative altcoin, contrasting with Bitcoin's position as a store of value. Market participants began moving away from riskier holdings amidst growing uncertainty.
The announcement to halt Bitcoin purchases marks a significant event that could influence short-term market trends. XRP and other altcoins are likely to continue facing volatility amid uncertainty.
