don't buy
Treasury Won't Buy Crypto; Seized Assets to Fund Reserves — Bearish for BTC/ETH
I note that Scott Vescent, the U.S. Treasury Secretary, said the Treasury will not buy cryptocurrencies and will instead build reserves from seized crypto assets. This removes a potential source of official buy-side demand.
I view this as a policy-driven easing of demand for Bitcoin and Ethereum that increases short-term downside pressure and keeps headline risk elevated as seized coins are managed.
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Analysis
The announcement eliminates a potential government buyer and signals that seized crypto will be used administratively rather than market-supportively. That reduces incremental demand and raises the ri...
Recommendation
Avoid initiating new long positions for now and consider reducing exposure until there is clarity on how seized assets will be managed or sold; traders should watch for related liquidation events and ...
Disclaimer
The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.