- Ethereum led with $342M in liquidations, followed by Bitcoin ($162M), Solana ($61M), and XRP ($55M).
- US Treasury Secretary Scott Bessent gave mixed signals on future Bitcoin purchases for the Strategic Reserve.
- Policy changes include halting BTC sales, potentially reducing selling pressure in the long term.
- Bitcoin briefly dipped below $120K after hitting an all-time high above $124K.
$1B Crypto Liquidations as US Treasury’s Bitcoin Stance Sparks Market Volatility
The cryptocurrency market faced a dramatic sell-off, with nearly $1 billion in liquidations over the past 24 hours. The sharp downturn followed US Treasury Secretary Scott Bessent’s conflicting statements on the government’s Bitcoin Strategic Reserve strategy.
$1B Liquidation Hits Long Traders
According to data from Coinglass, total crypto liquidations reached $961 million, with long traders bearing the brunt at $821 million.
- Ethereum saw the highest losses at $342M,
- Bitcoin followed with $162M,
- Solana recorded $61M, and
- XRP faced $55M in liquidations.
Analysts link Ethereum’s high liquidation volume to its recent rally toward record highs, making it more vulnerable to sharp reversals.
Scott Bessent’s Mixed Bitcoin Reserve Signals
Initially, Bessent announced that the US Treasury would not purchase additional Bitcoin for the Strategic Reserve, relying instead on confiscated assets from criminal and regulatory actions. He also confirmed a halt on BTC sales, a notable shift from previous administrations’ sell-offs — a move that could reduce selling pressure in the medium term.
Also Read: Tether Boosts Bitcoin Reserves with 8,888 BTC Acquisition in Q1 2025
However, hours later, Bessent softened his stance, saying the Treasury would still explore budget-neutral methods to grow the reserve, aligning with President Trump’s March 2025 order to make the US the “Bitcoin superpower of the world.”
Market Reaction
The conflicting statements sparked immediate volatility. Bitcoin fell below $120,000 after touching an all-time high above $124,000 earlier in the day. The market’s swift reaction highlights crypto’s sensitivity to high-level policy changes.
Bessent also touched on other strategic reserves, noting the US holds 261.5 million ounces of gold, officially valued at $42.22 per ounce under outdated 1973 pricing.
Outlook
With the US Treasury holding one of the largest Bitcoin reserves globally, any policy shift can impact BTC supply dynamics. While the halt in BTC sales could be bullish long term, the day’s massive liquidations underscore the risks of government-driven volatility in crypto markets.