The cryptocurrency market witnessed a downturn, with practically $1 billion in liquidations in simply 24 hours. This got here after US Treasury Secretary Scott Bessent shared an replace on the way forward for the federal government’s Bitcoin holdings.
$1 Billion Liquidation Hits Long Traders Amid Treasury Update
According to Coinglass data, whole liquidations over the previous day reached roughly $961 million, with lengthy positions struggling essentially the most. Of this, $821 million got here from lengthy contracts as Bitcoin and different main cryptocurrencies declined.
Ethereum-related contracts topped the record with $342 million in liquidations, adopted by Bitcoin at $162 million. Other altcoins additionally noticed heavy losses as Solana recorded $61 million in liquidations, whereas XRP confronted $55 million in liquidations.
Analysts attribute Ethereum’s dominance in liquidations to its current surge towards all-time highs. This decline got here after US Treasury Secretary Scott Bessent shared that the US had no plans to purchase extra Bitcoin. However, he later backtracked with feedback that contradict earlier claims.
The combined alerts contradict the federal government’s technique following President Trump’s March 2025 govt order establishing the Strategic Bitcoin Reserve. Notably, the previous Executive Director of the US President’s Council of Advisers on Digital Assets, Bo Hines, had advocated for aggressive accumulation of Bitcoin by means of budget-neutral methods.
Scott Bessent Sends Mixed Messages on US Strategic Reserve Plans
Scott Bessent earlier confirmed that the US Treasury won’t be buying further Bitcoin for its Strategic Reserve. Instead, the reserve will proceed to develop by means of confiscated belongings seized in legal and regulatory actions.
Bessent additionally revealed that the federal government will halt all Bitcoin gross sales. This can be a reversal from earlier practices that noticed billions in BTC offered by earlier administrations. This discount in promoting stress may assist Bitcoin’s worth in the long run.
However, the market’s rapid response was antagonistic. BTC briefly fell under $120,000 after hitting a record high above $124,000 earlier within the day.
Not lengthy after, Bessent reaffirmed that the US Treasury stays dedicated to exploring budget-neutral strategies of increasing the reserve. This would inherently fulfill Trump’s imaginative and prescient of constructing the United States the “Bitcoin superpower of the world.”
Bitcoin that has been lastly forfeited to the federal authorities would be the basis of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order.
In addition, Treasury is dedicated to exploring budget-neutral pathways to purchase extra…
— Treasury Secretary Scott Bessent (@SecScottBessent) August 14, 2025
Bessent additionally addressed broader asset administration methods within the interview, together with gold reserves. The US holds 261.5 million ounces of gold, formally valued at $42.22 per ounce below a 1973 normal.
With the US Treasury holding one of many world’s largest Bitcoin stockpiles, the supply-side stress on BTC may ease within the medium time period. Combined with the day’s huge liquidations, this coverage shift underscores the heightened sensitivity of crypto markets to high-level authorities selections.
Michael Adeleke
Michael Adeleke is a passionate crypto journalist identified for breaking down advanced blockchain ideas and market developments into clear, participating narratives. He makes a speciality of delivering well timed information and sharp market evaluation that retains crypto fanatics knowledgeable and forward of the curve. With an engineering background and a level from the University of Ibadan, Michael brings analytical depth and precision to every bit he writes.
Investment disclaimer: The content material displays the writer’s private views and present market circumstances. Please conduct your individual analysis earlier than investing in cryptocurrencies, as neither the writer nor the publication is liable for any monetary losses.
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