The U.S. government has halted further purchases of Bitcoin for its strategic reserve, leading to a dramatic price drop below $120,000. This decision marks a significant shift in the country’s approach to cryptocurrency holdings and has triggered substantial market volatility. Treasury Secretary Scott Bessent announced the halt on August 14, 2025, explaining that the government will no longer acquire additional Bitcoin through direct purchases. This policy change significantly impacted investor sentiment and led to a rapid decline in the price of Bitcoin from its historic highs. The move marks a significant departure from previous speculation about governmental market intervention.