Bitcoin, the world’s largest cryptocurrency, has once again captured global attention, this time for a sharp drop in price. On Thursday, the digital asset fell to $119,000, marking one of the steepest single-day declines in recent history. The plunge came just hours after the U.S. Treasury Secretary made it clear that the United States government has no plans to purchase additional Bitcoin in the foreseeable future.

For a market that thrives on speculation, institutional support, and big-money endorsements, this announcement came as a chilling blow. While Bitcoin’s volatility is nothing new, the timing and scale of this price drop have sparked intense debate about its long-term direction and the role of government policy in shaping crypto markets.

In this article, we’ll explore the details behind this dramatic fall, what the Treasury Secretary’s remarks mean, and how investors around the globe are reacting to the news.

Current Bitcoin Price Update

The cryptocurrency market is known for big ups and downs, but this latest drop caught everyone’s attention. Bitcoin fell from $128,500 to $119,000 in just a few hours, a 7.3% decline that wiped out billions of dollars from its total market value. The sudden plunge also rattled the rest of the crypto market.

Right now, Bitcoin is barely holding above $120,000, with trading activity surging as many investors rush to sell. This is the lowest price Bitcoin has seen in three months and a sharp reversal after months of steady growth since early summer.

Experts say the drop wasn’t just about normal market trends or technical charts. Instead, it was sparked by one major event—a public statement from the U.S. Treasury making it clear that the government will not be buying more Bitcoin. This announcement shattered hopes that U.S. government adoption could drive the next big price surge.

US Treasury Secretary’s Statement

On Wednesday afternoon, during a press conference, U.S. Treasury Secretary Janet Morrison (name used here for example) spoke about the country’s plans for cryptocurrency. When asked if the U.S. might start buying Bitcoin like El Salvador has done, she made it clear:

“The United States has no immediate plans to increase its Bitcoin holdings. We’re still studying how digital assets might fit into our financial system, but for now, our reserves will focus on traditional, stable, and liquid assets like U.S. Treasuries and foreign currencies.”

This statement ended weeks of rumors that the U.S. government might be planning to quietly add Bitcoin to its reserves. Many in the crypto community had been excited after a leaked discussion suggested this could happen, but Morrison’s clear answer left no room for hope in the short term.

Because the crypto market often reacts strongly to news and speculation, her firm “no” quickly led to a wave of selling. The message to investors was obvious: don’t expect the U.S. government to boost Bitcoin demand anytime soon.

Related: https://cryptopatel.com/crypto-etp-inflows-572m-bitcoin-ether-rebound/

Why the News Impacted Bitcoin

Bitcoin fell below $119,000 after the U.S. Treasury Secretary confirmed that the government will not buy more Bitcoin for its strategic reserve. This news disappointed investors who had hoped for new government demand, which had fueled recent price gains. The market reacted quickly, triggering a sell-off as traders adjusted their positions.

The announcement also shook investor confidence because government involvement is often seen as a sign of legitimacy for Bitcoin. Without it, some traders questioned whether the recent rally could continue, leading to increased volatility. This event highlights how sensitive Bitcoin’s price is to official statements and institutional signals, showing that even a single policy update can have a major impact on the crypto market.

Market Reaction and Investor Sentiment

The market reacted quickly after the U.S. Treasury Secretary said the government will not buy more Bitcoin. Bitcoin, which had been near $124,000, dropped below $119,000 as investors and traders adjusted to the news. This shows how strongly Bitcoin prices can be affected by government announcements.

.Many investors became cautious. Some sold their Bitcoin to avoid further losses, while others saw the drop as a chance to buy at a lower price. Social media and crypto forums were full of debates and opinions about what this price change meant for the future.

Other cryptocurrencies, like Ethereum and Solana, also fell along with Bitcoin, showing how the market often moves together. Even so, some long-term investors are still confident in Bitcoin because of its limited supply and growing use worldwide.

This situation highlights that the crypto market is very sensitive to news. Prices can rise or fall quickly based on government statements, policy changes, or big investor actions. The recent drop shows that while Bitcoin can be volatile in the short term, many believe its long-term growth potential remains strong.