US Won’t Bail Out Bitcoin, Says Treasury Secretary Bessent

Highlights:

• Bessent rules out Bitcoin bailout as prices slide and market pressure grows.
• Federal Bitcoin holdings soar from $500 million at seizure to more than $15 billion.
• Strategic Bitcoin reserve plan limits purchases to seizures and budget-neutral methods.

United States Treasury Secretary Scott Bessent appeared before Congress on Wednesday and made it clear that Washington will not rescue Bitcoin during market stress. He said the government will keep Bitcoin seized through legal cases. However, it will not ask private banks to buy more if prices fall.

U.S. Treasury Secretary Scott Bessent said during a congressional hearing that the U.S. will retain Bitcoin obtained through asset seizures but will not direct private banks to buy BTC during market downturns or “bail out Bitcoin.” In an exchange with California Congressman and…

— Wu Blockchain (@WuBlockchain) February 5, 2026

Lawmakers Question Bitcoin Support and Seized Holdings

During the hearing, California Congressman Brad Sherman questioned Bessent directly. Sherman asked whether the Treasury or parts of the Federal Open Market Committee could step in to bail out Bitcoin. His question reflected wider concerns about possible government support during crypto market swings.

Sherman then followed up with another question. He asked if Bessent planned to push banks to buy more Bitcoin or so called Trump Coin by changing reserve rules. In response, Bessent was firm. He said he does not have that power as Treasury secretary. 

Bessent said:

“I am secretary of the Treasury. I do not have the authority to do that, and as chair of the Financial Stability Oversight Council (FSOC), I do not have that authority.”

Bessent said Bitcoin seized by the government has risen sharply in value. At the time of seizure, it was worth about $500 million. Since then, it has grown to more than $15 billion while held by the government. This shows how large the federal Bitcoin holdings have become. His testimony also updated Congress on the Bitcoin strategic reserve plan. 

President Trump launched this plan in March last year through an executive order. The order allows the government to build Bitcoin reserves only through asset seizures or budget-neutral methods. Because of this limit, some Bitcoin supporters said the move was not strong enough. Budget-neutral methods mean swapping existing reserve assets for Bitcoin. These assets include petroleum or precious metals. As a result, the government cannot buy Bitcoin directly from the market. 

Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order.

In addition, Treasury is committed to exploring budget-neutral pathways to acquire more…

— Treasury Secretary Scott Bessent (@SecScottBessent) August 14, 2025

Crypto Market Drops Sharply Amid Bitcoin Sell-Off

Bessent’s remarks came as crypto prices were already falling. In the past 24 hours, Bitcoin dropped more than 6%. It traded near $71,740 and briefly fell to $70,140. This was its lowest level since November 2024, based on TradingView data. As a result, Bitcoin moved below key price ranges that had held through January. This confirmed a technical breakdown and increased selling pressure. Soon after, weakness spread across the wider market.

Because of this drop, the total crypto market value fell to $2.45 trillion. That marked a 5.14% decline in just one day. Meanwhile, the damage has been building for weeks. Over the past 22 days, the crypto market has lost nearly $900 billion in value. This is the largest sell-off ever recorded. Now, the scale of losses is raising fresh questions about whether governments should step in to stabilize digital assets.