Minister Bessent: America is not buying more Bitcoin, holding seized assets as the market plummets

In a brief interview with Fox Business on Thursday morning, U.S. Treasury Secretary Scott Bessent stated that the government will not purchase additional Bitcoin for President Donald Trump's strategic reserve, estimating the current value of the holdings at around 15–20 billion USD.

Bessent describes the strategic Bitcoin reserve as a step for America to "begin stepping into the 21st century," while affirming that the currently confiscated Bitcoin assets will continue to be held and not sold, and that future confiscated assets could increase this reserve.

"We will not buy more, but will utilize seized assets and continue to accumulate. We will stop selling," he told Fox Business. "At the current price, I believe that America's Bitcoin reserves are around 15 to 20 billion USD."

US Secretary of the Treasury BessentWhen asked whether the US would revalue the 261.5 million ounces of gold it holds — currently recorded on the books at approximately 11 billion USD at a price of 42.22 USD/ounce from 1973 but with a market value of about 750 billion USD — Bessent stated that he doubts the possibility of revaluation, but affirmed that gold will still be held as a store of value.

Later, Bessent wrote on X that the Department of Finance "is committed to seeking budget-neutral options to purchase additional Bitcoin, expanding reserves," reiterating its previous stance.

The Journey of Forming the Bitcoin Reserve

Immediately after taking office on January 20, President Trump signed the first executive order related to cryptocurrency, establishing the "Presidential Task Force on Digital Asset Markets" led by White House cryptocurrency advisor David Sacks, with the mission of building a federal legal framework for digital assets and researching the establishment of a "national strategic digital asset reserve."

On March 6, Trump accelerated the process with an executive order to establish America's strategic Bitcoin reserve, based on approximately 198,022 BTC that the government holds, most of which was seized from criminal or civil cases, except for assets that need to be returned to victims.

Trump also tasked Bessent and Commerce Secretary Howard Lutnick with developing a strategy to purchase additional Bitcoin without incurring extra costs for American taxpayers. The decree simultaneously established the U.S. digital asset reserve for other digital assets beyond seized Bitcoin, but the government asserted that it would not purchase more beyond the seized source.

The White House task force has a 180-day deadline to finalize the cryptocurrency roadmap report, which is set to be released by the end of July, but there are few new details regarding the Bitcoin reserve. Federal agencies must submit reports by April 5 regarding the rights to transfer digital assets into the reserve. By May 5, Bessent is expected to present the legal assessment and investment strategy, but these deadlines have passed without any public information.

The crypto market is on fire after Bessent's remarks and hotter-than-expected PPI data

Immediately after the interview and the producer price index data (PPI) for July exceeded expectations, the cryptocurrency market sharply reversed. Bitcoin dropped over 4%, from above 121,000 USD to below 118,000 USD before slightly recovering and currently trading around 118,327 USD (according to The Block).

Ether fell more than 5% to below 4,500 USD, while the GMCI 30 index — representing the top 30 cryptocurrencies — lost 4% in just about an hour.

The PPI data for July in America increased by 3.3% year-on-year, higher than the forecast of 2.5% and up from the adjusted level of 2.4% in June, marking the highest annual increase since February. Compared to the previous month, PPI rose by 0.9% — the highest level since June 2022.

Thạch Sanh