Bitcoin has experienced a significant drop, falling below $119,000 after US Treasury Secretary Scott Bessent announced that the government will not make any further purchases of Bitcoin to build a reserve. The cryptocurrency was trading at $118,730 at the time of the report, breaking through a critical support level. Bessent's statement came during an interview, emphasizing that while the government would not invest in Bitcoin, it plans to utilize confiscated assets to enhance its digital asset portfolio. This approach contrasts with previous guidance from President Donald Trump, which had instructed the government to explore budget-neutral strategies for increasing Bitcoin holdings. The drop in Bitcoin’s value followed an initial period of optimism regarding its market potential as it aimed to become the fifth-largest global asset.

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