The cryptocurrency market experienced significant upheaval earlier this Thursday, primarily driven by conflicting statements from U.S. Treasury Secretary Scott Bessent regarding the nation's stance on Bitcoin acquisition for a strategic reserve. Initially, Bitcoin, the leading cryptocurrency, saw a sharp collapse to an intraday low of $117,719 on the Bitstamp exchange after Bessent confirmed the U.S. would not be buying crypto. This dramatic plunge occurred on the very same day Bitcoin had reached a new all-time high of $124,517, highlighting extreme market volatility.

The market correction was not limited to Bitcoin, as altcoins also took a considerable hit. XRP, for instance, plummeted by 7% within minutes, briefly dipping below the $3 mark. Overall, CoinGlass data revealed that more than $1 billion worth of crypto was liquidated over a 24-hour period, with long positions accounting for the overwhelming majority of this wipeout, totaling $778 million.

Bessent's initial clarification stated that the U.S. policy, established in March, was to cease selling existing confiscated coins, while explicitly ruling out any new Bitcoin purchases. This stance dramatically affected market sentiment, causing the odds of the U.S. establishing its own strategic Bitcoin reserve in 2025 to collapse to a new all-time low of just 16% on Polymarket, a major cryptocurrency-based betting platform. He further clarified that the government's current holdings, comprised of confiscated coins, amount to up to $20 billion, making the U.S. the largest holder of top cryptocurrencies among all countries. BitTBO data also places China and the U.K. in the top three, though China is reportedly considering selling its substantial Bitcoin holdings to address a budget deficit.

However, in a surprising turn of events, Secretary Bessent later walked back his earlier comments, suggesting in a social media post that the U.S. Treasury might actually seek