The price of Bitcoin (BTC) retreated sharply on Thursday after hitting an all-time high of $124,089, sliding below $117,500 and triggering $227 million in leveraged liquidations on bullish positions.
According to the CME FedWatch tool, it stated that traders appear to have reacted negatively to the US Treasury Secretary Scott Bessent’s remarks that the government has no plans to expand Bitcoin purchases for its strategic reserve.
Speaking to Fox Business, Bessent rejected proposals to redirect proceeds from a potential revaluation of Treasury gold into Bitcoin. “We’re not going to be buying that, but we are going to use confiscated assets and continue to build that up,” he said.
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His words, however contradicts market expectations formed after U.S. President Donald Trump’s March executive order, which called for “budget-neutral strategies” to grow the reserve. That order, signed on March 6, established a strategic Bitcoin reserve and a separate digital asset stockpile funded initially with cryptocurrency seized in criminal cases.
The order mandates that the reserve will hold approximately 200,000 bitcoins, valued at around $17 billion, seized through criminal and civil forfeiture proceedings. Also, it mandates that these bitcoins not be sold, treating them as a long-term store of value, likened to a “digital Fort Knox.” It also authorizes the Treasury and Commerce Departments to explore budget-neutral strategies for acquiring additional bitcoin without taxpayer costs.
The order requires a full accounting of federal digital asset holdings to ensure transparency. This move aims to position the U.S. as a leader in cryptocurrency, though it has sparked mixed reactions, with some praising it as a step toward mainstream adoption and others questioning its strategic value.
While BTC corrections were accelerated due to the hot US PPI print, bearish signals were observed earlier. Cointelegraph noted a bearish divergence between price and relative strength index or RSI, after BTC tagged new highs above $123,000, possibly leading to liquidity grab from its previous highs. The immediate price dip also formed a swing pattern failure, outlining possible choppy price action for the next few days.
From a technical standpoint, Bitcoin’s recent leveraged unwind has absorbed key internal liquidity zones between $119,000 and $117,500. Currently, the most likely scenario could be a period of sideways consolidation following an 11% rise over the past 12 days. A bullish case would require a decisive close above $120,000 on the four-hour chart. However, the probability of a retest below $117,000 has increased due to a long-term market fractal pattern.
The recent Bitcoin price downturn came after the crypto asset briefly surpassed Google’s $2.4 trillion market capitalization to become the world’s fifth-largest asset, before sentiment cooled. While Bitcoin’s repeated inability to hold above $120,000 has tempered breakout enthusiasm, analysts note the asset remains well-positioned for gains in 2025, supported by global central bank liquidity expansion. For now, however, the market’s appetite for a decisive push higher appears limited. Despite the drop, derivatives market metrics remained stable. Options data shows a modest 3% skew, suggesting balanced risk and no signs of market stress.
On the other hand, Ethereum bull market projections this year have been notably optimistic, driven by technical patterns, institutional interest, and on-chain metrics. Despite the sharp correction from a multi-year high, currently trading below $4,600, traders are still confident that Ether will hit 5,000 before the end of 2025.