FX.co ★ Bitcoin Sinks as Bessent Dismisses Bailout

In early February, Bitcoin fell below $73,000, reaching its lowest point since November 2024. This decline followed a statement by US Treasury Secretary Scott Bessent, who confirmed that the US government would not provide a bailout for the cryptocurrency. When questioned by the House Financial Services Committee about whether the US Treasury possessed the authority to purchase Bitcoin or other digital assets, Bessent clarified that it lacked such authority. Bitcoin, the largest cryptocurrency globally, has experienced a decline of over 40% from its October peak. Investor Michael Burry cautioned that the downturn could deepen, potentially causing long-term repercussions for companies that have acquired significant holdings over the previous year. He criticized Bitcoin as a purely speculative asset that has not fulfilled its role as a hedge against currency debasement, unlike gold and other precious metals.