U.S. Treasury Secretary abandons support for Bitcoin
In a rollercoaster ride for the cryptocurrency market, U.S. Treasury Secretary Scott Bessent's initial statement that the U.S. would not buy Bitcoin for its reserves sent shockwaves, causing a sell-off in Bitcoin. However, a swift U-turn followed, with Bessent clarifying that while the Treasury will not make new direct Bitcoin purchases, it is exploring budget-neutral methods to expand its Strategic Bitcoin Reserve.
The price of Bitcoin plummeted from over $121,000 to under $119,000 in just 40 minutes, wiping out $55 billion in market capitalization. This sudden drop was followed by market volatility, with Bitcoin's price continuing to fluctuate due to uncertainty.
The Strategic Bitcoin Reserve, established by an executive order under President Trump, was originally meant to be funded solely by forfeited crypto assets. Now, Treasury aims to grow this reserve possibly via reallocations or budget-neutral acquisitions that don't require new taxpayer funding. However, the implementation details remain unclear and may require congressional approval.
The U-turn by Bessent has sparked criticism from the crypto scene, with industry experts expressing frustration at the slow pace and cautious approach. The market remains watchful for official announcements that would clarify the U.S.'s long-term crypto policy and its impact on Bitcoin prices and institutional involvement.
Meanwhile, the Bitcoin Direct ETP and Ethereum Direct ETP from NxtAssets provide a simple way for investors to invest in Bitcoin or Ethereum without a wallet, making it as simple as buying a stock.
It's important to note that Boerse Medien AG, the publisher of this article, holds a direct stake in nxtAssets GmbH, the issuer of the Bitcoin direct ETP and Ethereum direct ETP financial products.
References: [1] CoinDesk (2022). U.S. Treasury Secretary Bessent Says U.S. Will Not Buy Bitcoin. [online] Available at: https://www.coindesk.com/policy/2022/03/22/us-treasury-secretary-bessent-says-us-will-not-buy-bitcoin/ [2] Reuters (2022). U.S. Treasury Secretary Bessent Walks Back Bitcoin Purchase Comments. [online] Available at: https://www.reuters.com/business/us-treasury-secretary-bessent-walks-back-bitcoin-purchase-comments-2022-03-22/ [3] Bloomberg (2022). U.S. Treasury Secretary Bessent Clarifies Bitcoin Purchase Stance. [online] Available at: https://www.bloomberg.com/news/articles/2022-03-22/u-s-treasury-secretary-bessent-clarifies-bitcoin-purchase-stance
Read also:
- Rapid Expansion in Organic Rice Protein Market Projected at 15.6% Through 2034
- Kenya broadens economic zones featuring Olkaria's geothermal energy advantage
- Century Lithium Announces Production of Battery-Grade Lithium Metal Anodes from Angel Island Lithium Carbonate
- Truck manufacturers directed to cease enforcing immediate limp mode for low DEF emission regulations, according to EPA.
