Scott Bessent in Congress basically wanted to make a very simple point. The US government had seized Bitcoin in various criminal cases. But they did not sell all the Bitcoin immediately. They kept about $500 million worth of Bitcoin, as a kind of reserve. Over time, the price of that Bitcoin has increased so much that today it is worth more than $15 billion. And President Donald Trump is supporting this decision and the entire policy.
This is important because Bitcoin is no longer seen as just “evidence of crime”. Rather, it is being said that it is a valuable state asset—which can be used strategically for the country in the future.
It can be assumed that this will have an impact on the crypto market. The biggest impact will be on Bitcoin. When a powerful country like the US government publicly says that they are holding Bitcoin and have made huge profits from it, the credibility of Bitcoin increases a lot. The concept of “digital gold” becomes stronger. Big investors and institutions then start thinking—if the government is holding it, then the thing is no longer as risky as before. This may put positive pressure on the price of Bitcoin in the medium and long term.
When Bitcoin is strong, it usually has an impact on the altcoin market as well. Ethereum, altcoins with large market caps, and even some meme coins may rise. However, one thing needs to be clearly remembered here—the government is directly focusing on Bitcoin, not the entire crypto market. So some good altcoins may make a profit, while many coins may not. It is not right to assume that there will be profits everywhere at once.
From a policy perspective, this statement also gives an indication. It seems that the US government will not go the way of completely banning crypto. Rather, it will regulate, make rules, and find ways to profit from there. Such a statement coming from the Treasury level means that regulations will come, but anti-crypto sentiment may gradually decrease.
Another big issue is market psychology. One thing will enter the minds of many—the government itself has made more than 30 times the profit from Bitcoin. Those who have been out of it for so long may enter the market out of FOMO. Discussion in the media will increase, and as a result, prices may suddenly fluctuate more.