The price of Bitcoin (BTC) today plunged sharply after the United States government confirmed it would not intervene to save the crypto market amid pressure.
This statement was made directly by US Treasury Secretary Scott Bessent during a Congressional meeting, which immediately triggered a negative reaction in the digital asset market.
Bitcoin briefly fell below the US$73,000 area on Wednesday evening local time. Selling pressure continued, bringing the price of BTC to around US$71,000 on Thursday morning (5/1). Year to date, Bitcoin has recorded a correction of about 17%.
This weakness does not stand alone. The global market is currently in a risk-off phase, while sentiment towards crypto is becoming increasingly fragile after a strong signal from US fiscal authorities.
Bessent's Statement Becomes a Major Trigger
During a hearing in the House Financial Services Committee, Scott Bessent was asked whether the US Department of the Treasury has the authority to buy Bitcoin or instruct banks to conduct bailouts when the crypto market crashes. His answer was straightforward.
Bessent emphasized that he does not have that authority, either as Secretary of the Treasury or as Chairman of the Financial Stability Oversight Council.
"I am the Secretary of the Treasury. I do not have the authority to do that, and as the chairman of the FSOC, I do not have that authority," Bessent was quoted as saying by Yahoo Finance.
He also rejected the possibility of the government directing private banks to buy Bitcoin to support prices.
This statement is viewed by the market as a strong signal that crypto will not be treated like systemic financial institutions. There is no safety net from the state when volatility rises, and the risk is fully in the hands of market participants.