PANews February 5 News, U.S. Treasury Secretary Scott Bessent testified before Congress that the U.S. government will not “rescue” the asset by requiring private banks to buy more Bitcoin during market downturns. He emphasized that neither the Treasury Department nor the Financial Stability Oversight Council (FSOC) has such authority.
Bessent also revealed that the $500 million worth of Bitcoin seized through asset confiscation has appreciated to over $15 billion. According to an executive order signed by Trump in 2025, the U.S. can only increase its strategic reserves through asset confiscation or budget-neutral strategies (such as converting oil or precious metals into Bitcoin), rather than through open market purchases.
Although this move has been criticized by some in the Bitcoin community as insufficient, Bitcoin advocates believe that the U.S. government’s purchasing actions could encourage other countries to establish their own strategic reserves, thereby impacting Bitcoin prices and market demand.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Oil Prices May Surge to $200! Analysts Say Geopolitical Tensions Are Becoming Bitcoin's Biggest Price Driver
As Middle East tensions escalate, researchers point out that Bitcoin's price drivers are shifting from traditional economic indicators toward geopolitical risks. Recently, Bitcoin has demonstrated strong performance among safe-haven assets, showing that investors are reassessing its role, with institutional capital continuing to flow in, reflecting recognition of Bitcoin as a holdable asset.
GateNews3m ago
Matrixport Report: Conditions for Bitcoin's Rebound Are Gradually Taking Shape
Matrixport's report on March 13 indicated that the current sentiment in the cryptocurrency market is weak, trading volumes are low, and most traders are focusing on other assets. Bitcoin has declined for five consecutive months, the market capitalization of altcoins has decreased, conditions for a rebound are gradually emerging, and liquidity is improving.
GateNews5m ago
Bitcoin Tax Policy Suddenly Sparks Controversy: Brian Armstrong and Jack Dorsey Embroiled in Congressional Lobbying Scandal
The U.S. Congress has shown divisions in discussions regarding cryptocurrency tax policy, with the small transaction tax exemption proposal gradually applying only to stablecoins, triggering dissatisfaction among Bitcoin supporters. Industry leaders have clashed publicly over this, with the core of the debate centered on small transaction exemptions. Currently, cryptocurrencies are classified as property, and transactions require capital gains tax payments, resulting in high compliance costs.
GateNews14m ago
Analyst: If Bitcoin returns to $80,000, Strategy stock price could surge by 70%
Analysts believe that Bitcoin-related company MicroStrategy (MSTR), which has experienced a pullback, may be forming a bottom, and if Bitcoin prices resume their upward trend, the stock could rebound to $200. MSTR is currently trading at approximately $134, with nearly 50% potential upside. Bitcoin's price movements and changes in regulatory policies will directly affect the company's stock performance.
GateNews21m ago
Wintermute Suggests Bitcoin Miners Convert BTC Holdings into Yield-Bearing Assets to Counter Profitability Pressures
Wintermute notes that Bitcoin miners face profitability challenges due to reduced income after the halving and high energy costs, recommending that miners proactively manage their BTC holdings by adopting strategies such as using derivatives and lending protocols to enhance returns in response to market pressure.
GateNews32m ago
Miner profits under pressure! Wintermute states that Bitcoin mining companies must shift to AI or activate BTC asset yields.
Wintermute reports that Bitcoin miners face declining revenue pressure, with traditional mining profitability difficult to increase. Mining enterprises are considering transitioning to AI computing power business to maintain competitiveness, but this requires substantial capital investment. The report believes this profitability pressure differs from previous cycles and resembles more of an industry structural adjustment. The industry is expected to become more concentrated and efficient.
GateNews35m ago
