Nearly $1B in Crypto Wiped Out After Treasury Bitcoin Confusion
The crypto market saw almost $1 billion in liquidations within 24 hours after U.S. Treasury Secretary Scott Bessent delivered mixed messages about the nation’s Bitcoin reserve strategy.
Data from Coinglass shows $961 million in positions were liquidated, with $821 million coming from longs. Ethereum led the losses at $342 million, followed by Bitcoin ($162M), Solana ($61M), and XRP ($55M). Analysts link Ethereum’s heavy losses to its recent rally toward record highs.
The turmoil began when Bessent said the U.S. Treasury would halt additional Bitcoin purchases for the Strategic Reserve, relying instead on confiscated assets. He also announced a stop to Bitcoin sales — a reversal from previous administrations — which could ease long-term selling pressure.
However, markets dropped sharply, with BTC falling below $120,000 after touching $124,000 earlier. Bessent later clarified that the Treasury still plans to explore budget-neutral ways to expand the reserve, in line with President Trump’s vision of making the U.S. a “Bitcoin superpower.” 
The Strategic Bitcoin Reserve, created by Trump’s March 2025 executive order, will be built on forfeited BTC held by the federal government. The U.S. also maintains significant gold reserves of 261.5 million ounces, officially valued at $42.22 per ounce under a 1973 standard.
The episode highlights how sensitive crypto markets remain to top-level government policy shifts — and how quickly mixed signals can trigger massive liquidations.
