Yeliz Akmaca 
U.S. Treasury Secretary Scott Bessent’s mixed signals on Bitcoin reserves shook cryptocurrency markets. In just 24 hours, around $1 billion in liquidations occurred. Long-term investors faced losses totaling $821 million. Ethereum led with $342 million in liquidations. Bitcoin followed with $162 million, Solana $61 million, and XRP $55 million.
Bessent initially stated the U.S. would not make further Bitcoin purchases for its Strategic Reserve. Shortly after, he revised his remarks, creating market uncertainty. This caused a sudden wave of sell-offs. Coinglass data shows long positions suffered the most losses during this period.
Ethereum and Bitcoin Lead Crypto Liquidations
Ethereum’s liquidation dominance drew significant attention. Analysts link the losses to ETH’s recent surge toward all-time highs. Bitcoin briefly surpassed $124,000 before dropping below $120,000. Solana and XRP also recorded notable liquidations. This highlights the market’s sensitivity to government announcements.
Bessent’s Strategic Reserve Remarks Impact Markets
Bessent confirmed the government will halt all BTC sales and explore budget-neutral ways to expand the reserve. This marks a shift from prior administrations’ policies. Moreover, it aligns with the 2025 Strategic Bitcoin Reserve initiative launched under President Trump. Bessent also referenced broader asset management, including gold reserves. The U.S. holds 261.5 million ounces of gold, valued at $42.22 per ounce under the 1973 standard.
These updates may ease medium-term supply pressure on BTC. However, large intraday liquidations increased short-term volatility. The crypto market remains highly responsive to top-level government decisions.
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