- US Treasury halts Bitcoin purchases, influencing market dynamics.
- Bitcoin falls to ~$113,000 post-announcement.
- Over $963M liquidated, impacting various altcoins.
On August 18, 2025, the U.S. Treasury halted Bitcoin purchases, causing immediate volatility and wiping out approximately $1 billion in leveraged positions within 24 hours.
This decision drove Bitcoin’s price down, impacting Ether and altcoins, highlighting macro policy implications in cryptocurrency markets.
The suspension of new Bitcoin purchases by the U.S. Treasury, announced by Treasury Secretary Scott Bessent, led to widespread volatility in the cryptocurrency market. This decision contributed to the dramatic drop in Bitcoin and other major cryptocurrencies.
Scott Bessent, former Chief Investment Officer at Soros Fund, played a central role. His announcement via the U.S. Treasury portal precipitated the market downturn. “The official announcement of halting government Bitcoin purchases was the pivotal catalyst for the crash,” said Bessent, echoing the seriousness of the government’s decision.
The immediate market impact was profound, with Bitcoin’s price plummeting towards $113,000, reflecting a significant decline. Ethereum and other large-cap altcoins also saw sharp losses, highlighting the broader market ramifications.
Financial markets experienced shockwaves, with $963 million in leveraged positions liquidated. This liquidation primarily occurred at exchanges including Bybit, Binance, and OKX, evidencing the rapid price shift and market volatility.
Insights from analysts like Leshka.eth and Benjamin Cowen provide historical perspective, illustrating how past cycle patterns align with current events. Leshka.eth commented on historical market strategies, reinforcing the value of experience over emotion in times of volatility.
The halt of Bitcoin purchases signals potential shifts in financial regulations and macroeconomic policies. Historically, such macro actions have led to volatile market cycles, with previous patterns possibly foreshadowing future market stabilization and recovery. Benjamin Cowen‘s analysis indicated that, “Bitcoin has consistently followed a post-halving cycle that exhibits distinct seasonal price movements, particularly around July, August, and September,” indicating possible future trends.
