Bitcoin plummets due to comments from the U.S. Treasury Secretary, the future of reserve policy and market reactions | Virtual NISHI

*This report is an article contributed to CoinPost by virtual NISHI (@Nishi8maru), a crypto analyst at X-Bank.

Cryptocurrency Market Report (8/15 AM 8:00)

On the evening of the 14th, the virtual currency Bitcoin (BTC) sharply declined after U.S. Treasury Secretary Janet Yellen stated that the federal government's Bitcoin reserves are built solely from confiscated assets valued at between $15 billion and $20 billion, denying any new purchases. Additionally, she indicated that there would be no request for a rate cut from the Federal Reserve. Furthermore, the wholesale price index (PPI) announced that day saw a month-on-month increase rate that reached a high level not seen in about three years, which also contributed to the weakening of rate cut pressures.

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However, on the morning of the 15th, Secretary of the Treasury Bessent stated on social media that "the Treasury is exploring means to acquire additional Bitcoin in a budget-neutral manner for the expansion of reserves," correcting his previous statement.

Market situation from August 14 to 15

In the derivatives market, demand and supply tightened in response to the sharp decline, resulting in backwardation where futures prices are lower than the spot price on multiple exchanges.

In the options market, a maximum open interest of $140,000, which is still higher than the current price, remains unchanged, and there has been no significant change in the put-call ratio. The bullish stance of short to medium-term investors is being maintained.

### Current Situation Analysis (8/15 AM 8:00)

The direction of the Bitcoin reserve policy of the U.S. administration has a significant impact on prices. In the past, there have been cases where the lack of information on reserve-related developments during the presidential decree in January and the White House Bitcoin Summit in May led to a substantial decline in prices.

The market is expecting a reserve of 1 million BTC, and several states, including Texas, are enacting reserve legislation at the state level. Given the high level of support from the cryptocurrency industry, Treasury Secretary Mnuchin quickly adjusted his stance upon sensing the sharp decline caused by this statement, demonstrating the administration's strong interest in cryptocurrency. As a result, it is believed to have been a positive factor for the market.

Feature: What will be the all-time highs for Bitcoin and Ethereum in 2025? Price predictions and key topics indicated by the prediction market.

Important Dates Ahead

• August 15th U.S. Retail Sales
• August 15th Consumer Confidence Index in the US
• August 21st, Release of the US FOMC Minutes

The list of market reports published in the past can be found here.

Contributor: Virtual NISHI Virtual NISHIX-Bank Crypto Analyst. Also involved in the production of BTC Status Alert and as a planner and supervisor of DECOCHART, engaged in the distribution of investment-related information necessary for the Japanese industry. Related: How to buy Bitcoin | Investment benefits, risks, and choosing the best exchange that beginners should know.