Scott Bessent Indicates Potential for Government Bitcoin Acquisitions
Treasury Secretary Scott Bessent announced that the Strategic Bitcoin Reserve will consist of $15 billion to $20 billion already held by the government, with no plans for new purchases. Later, he stated the department is exploring options to acquire more Bitcoin to expand this reserve.
The reserve will be built on forfeited tokens. This initiative follows an executive order from President Trump establishing the strategic bitcoin reserve. Bo Hines, previously leading the White House's Council of Advisors on Digital Assets, has left his position.
Bitcoin (BTC) traded around $118,000, down from a record high of $124,000 earlier in the day. The decline followed a stronger than expected Producer Price Index report, raising concerns about inflation and potential interest rate cuts by the Federal Reserve.