The United States government has enlivened the hopes of many bitcoiners. Scott Bessent, secretary of the treasure, announced that there would be no sale of bitcoin under the Trump era. But what about BTC purchases? An alternative that has filled many crypto-shad defenders, like senator Cynthia Lummis or the famous investor Michael Saylor. Will the United States government stay away from one of the most prominent investments of the moment?
In short
- Scott Bessent announces a freeze on Bitcoin purchases for the United States.
- The Bitcoin reserve of the United States will only be fed by seized assets.
- The Crypto market reacted strongly, with a fall in the BTC under the USD 119,000.
- The United States prefer a strategy to reduce its deficit via tax revenue, not bitcoin.
Bitcoin purchases freezing: an unexpected strategic choice
On August 14, during his visit to Fox Business, Scott Bessent confirmed what many feared: the United States government will not make new Bitcoin purchases. This announcement, made after several months of speculation and public positions, surprised. Bitcoiners hoped that a nationalized bitcoin reserve would be born, in the same way as a classic central bank with gold or dollars reserves.
However, Bessent said that the United States BTC strategic reserve will only feed on the assets seized by justice. “” We will use the assets entered and continue to accumulate them “, He added, explaining that Bitcoin will no longer be bought, but only stored following legal entries.
This decision puts an end to the ambitions of those who dreamed of a large government maneuver to increase the BTC reserve.
The cryptos market reacted quickly: Bitcoin, which had reached a historic peak of 124,457 USD, fell under the USD 119,000 in a few hours. The decision of the American government not only impacted the Crypto market, but also the perception of bitcoin as a reserve currency.
A budget strategy: when inflation is confronted with digital reserves
The stopping of Bitcoin purchases does not mean that the US government is completely disengaging from cryptos. According to Bessent, the United States will continue to use Bitcoins seized to expand the national reserve. A reserve which, currently, is estimated between 15 and 20 billion USD.
This model is similar to a passive accumulation strategy, where the government does not seek to speculate but to store these assets for crisis management purposes.
In an economic context where the public debt of the United States has crossed the bar of the 37 USD trillions, Bitcoin reserves could play a crucial role as a refuge.
Other actors, such as Michael Saylor, see Bitcoin an opportunity for nations to protect themselves against inflation. But the prudence of the United States shows another facet of financial management. While the Bitcoin reserve of the United States is static, the administration explores alternatives such as the increase in tax revenue, in particular via customs duties, which should reach 300 billion USD in 2024.
Although this approach makes it possible to lighten the pressure on the deficit, it does not offer a response to galloping inflation and the risks of devaluation of currencies. Despite the prudent position of the American administration, influential voices continue to defend Bitcoin as a solution to these global economic challenges.
Bitcoin in the geopolitical framework: an asset or a mirage for America?
In a world where cryptos develop at high speed, could Bitcoin become a geopolitical tool for the United States? The crypto industry is experiencing a dazzling boom, and the United States, although withdrawn from the direct purchase of Bitcoin, already have significant reserves of seized digital assets. The administration of Donald Trump had initially planned to acquire bitcoins via budget-Neutral strategies, but the stopping of purchases seems to mark a desire not to enter into the race for digital reserves on a large scale.
In this context, cryptocurrencies, and more particularly bitcoin, become a major issue in the face of rivals like China. Indeed, the strategy of decentralization of assets could allow countries like the United States to position themselves more strategic in the face of geopolitical adversaries.
However, without an active purchase plan, Bitcoin still seems to be perceived as a limited asset on the world scene.
Although Bitcoin can offer an alternative to more traditional assets, such as gold or fiduciary currencies, volatility in the crypto market represents a potential risk for the United States. By avoiding massive BTC purchases, the government protects itself from unpredictable fluctuations in cryptocurrencies. Bitcoin, in this perspective, remains an unreliable asset for a country whose economic stability is based on solid and more traditional reserves.
Some significant facts:
- The US government has stopped Bitcoin purchases to focus on seized assets;
- The Bitcoin price reached a historic peak of 124,457 USD before falling at 119,000 USD after the statements of Bessent;
- The Bitcoin reserve of the United States is estimated between 15 and 20 billion USD, but it will no longer feed on direct purchases;
- Customs duties should generate USD 300 billion in 2024, alternative to the purchase of Bitcoin for the reduction of the deficit.
While the United States chooses prudence, other countries such as Salvador, Norway, and Pakistan do not hesitate to invest in Bitcoin. The queen of cryptos thus stands out as an alternative to traditional currencies. These countries make cryptos a pillar of their economic policy, when others, like France, are still behind.
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