The cryptocurrency market witnessed a downturn, with nearly $1 billion in liquidations in just 24 hours. This came after US Treasury Secretary Scott Bessent shared an update on the future of the government’s Bitcoin holdings.
$1 Billion Liquidation Hits Long Traders Amid Treasury Update
According to Coinglass data, total liquidations over the past day reached approximately $961 million, with long positions suffering the most. Of this, $821 million came from long contracts as Bitcoin and other major cryptocurrencies declined.
Source: Coinglass
Ethereum-related contracts topped the list with $342 million in liquidations, followed by Bitcoin at $162 million. Other altcoins also saw heavy losses as Solana recorded $61 million in liquidations, while XRP faced $55 million in liquidations.
Analysts attribute Ethereum’s dominance in liquidations to its recent surge toward all-time highs. This decline came after US Treasury Secretary Scott Bessent shared that the US had no plans to buy more Bitcoin. However, he later backtracked with comments that contradict earlier claims.
The mixed signals contradict the government’s strategy following President Trump’s March 2025 executive order establishing the Strategic Bitcoin Reserve. Notably, the former Executive Director of the US President’s Council of Advisers on Digital Assets, Bo Hines, had advocated for aggressive accumulation of Bitcoin through budget-neutral strategies.
Scott Bessent Sends Mixed Messages on US Strategic Reserve Plans
Scott Bessent earlier confirmed that the US Treasury will not be purchasing additional Bitcoin for its Strategic Reserve. Instead, the reserve will continue to grow through confiscated assets seized in criminal and regulatory actions.
Bessent also revealed that the government will halt all Bitcoin sales. This is also a reversal from previous practices that saw billions in BTC sold by earlier administrations. This reduction in selling pressure could support Bitcoin’s price in the long term.
However, the market’s immediate reaction was adverse. BTC briefly fell below $120,000 after hitting a record high above $124,000 earlier in the day.
Not long after, Bessent reaffirmed that the US Treasury remains committed to exploring budget-neutral methods of expanding the reserve. This would inherently fulfill Trump’s vision of making the United States the “Bitcoin superpower of the world.”
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
Bessent also addressed broader asset management strategies in the interview, including gold reserves. The US holds 261.5 million ounces of gold, officially valued at $42.22 per ounce under a 1973 standard.
With the US Treasury holding one of the world’s largest Bitcoin stockpiles, the supply-side pressure on BTC could ease in the medium term. Combined with the day’s massive liquidations, this policy shift underscores the heightened sensitivity of crypto markets to high-level government decisions.
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Michael Adeleke
Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.
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