US Treasury Secretary Advocates Strategic Bitcoin Reserve as Government Asset

VADODARA, February 4, 2026 — U.S. Treasury Secretary Scott Bessent has formally advocated for the creation of a Strategic Bitcoin Reserve (SBR), classifying Bitcoin as a sovereign government asset. This latest crypto news emerges from a public statement where Bessent cited the Treasury's existing, massively profitable Bitcoin position. According to a post on X by Bitcoin Magazine, the government seized $1 billion in Bitcoin, retained $500 million, and watched that stake appreciate to over $15 billion. Market structure suggests this advocacy represents a seismic shift in U.S. fiscal policy toward digital assets.

Investigation: The SBR Proposal and Its $15 Billion Precedent

Secretary Bessent's advocacy centers on formalizing Bitcoin holdings within the U.S. Treasury's balance sheet. The primary source, Bitcoin Magazine's X post, details the financial rationale. After a seizure of $1 billion in Bitcoin, the Treasury opted to retain half. That $500 million position has since ballooned in value to over $15 billion. This 30x return forms the core empirical argument for the SBR. Consequently, Bessent is not proposing a new purchase but institutionalizing an existing, highly successful state position. The move mirrors strategic commodity reserves but applies a deflationary, digital asset.

Market Context & Historical Precedent

Historically, sovereign adoption signals have triggered macro bull cycles. El Salvador's 2021 Bitcoin legal tender law preceded a rally to an all-time high. In contrast, the U.S. proposing a reserve is a far larger liquidity event. Underlying this trend is a growing recognition of Bitcoin as a non-correlated treasury asset, a narrative previously championed by corporations like MicroStrategy. This development occurs alongside calls from Republican lawmakers for Treasury Bitcoin purchases, indicating bipartisan, albeit nascent, political momentum. , global monetary authorities are engaging with digital assets, as seen when BBVA joined a consortium for a Euro stablecoin.

Technical Architecture & Price Action

On-chain data indicates the Treasury's retained coins likely reside in a cold storage Custodial Wallet, creating a permanent supply shock. From a price action perspective, Bitcoin trades at $72,947, down 3.70% in 24 hours amidst Extreme Fear sentiment. This creates a stark divergence between price and a bullish fundamental catalyst—a classic Wyckoff accumulation signal. The critical technical level is the $70,000 support, coinciding with the 0.618 Fibonacci retracement from the last major swing high. A sustained hold above this level suggests the market is discounting the long-term SBR impact against short-term fear. The 200-day moving average at $68,500 provides secondary, stronger support.

By The Numbers

Why It Matters

This matters because it transitions Bitcoin from a speculative asset to a strategic national holding. A formal SBR would lock up a significant portion of the circulating supply, akin to a permanent Federal Reserve balance sheet operation but for a deflationary asset. Consequently, the available float for trading decreases, potentially reducing volatility and increasing the asset's attractiveness to pensions and endowments. It also sets a global precedent, possibly triggering similar reserve strategies by other nations. The immediate market impact is psychological, providing a fundamental anchor against the current Extreme Fear sentiment.

Expert Commentary

"The Treasury's advocacy is a validation of Bitcoin's store-of-value thesis at the highest level of fiscal policy. The $15 billion appreciation from a seized asset is not a trade; it's a strategic holding that has outperformed every traditional reserve asset. This could initiate a re-rating of Bitcoin's risk profile by global institutional allocators." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios based on the SBR news and current technicals. The bullish scenario requires price to reclaim the $75,000 level and hold above the $70,000 support, confirming the news has overpowered the fear-driven sell-off. The bearish scenario involves a breakdown below key support, indicating the market views the proposal as politically uncertain or too long-term.

• Bullish Invalidation Level: $75,000. A daily close above this resistance confirms the bullish narrative is gaining immediate traction, potentially targeting the previous high near $84,000.
• Bearish Invalidation Level: $68,500 (200-day MA). A sustained break below this level invalidates the positive momentum from the SBR news, suggesting a deeper correction toward $65,000 is likely.

The 12-month outlook hinges on political follow-through. If the SBR moves from advocacy to policy, it could establish Bitcoin as a permanent fixture in the U.S. financial architecture, attracting trillions in institutional capital over a 5-year horizon. If it stalls, the market may revert to trading on macro liquidity cycles and ETF flows.