Bitcoin Slips as Bessent’s Endorsement Sparks Market Buzz
In October, Bitcoin let down traders, unable to significantly surpass its previous all-time highs despite the Federal Reserve initiating a countdown that could potentialbessently alter the bitcoin price landscape. The bitcoin price has retreated from its high of $126,000 per bitcoin, igniting concerns over a potential $100,000 “death knell.” As Tesla billionaire Elon Musk raises concerns about bitcoin, U.S. Treasury Secretary Scott Bessent has unexpectedly endorsed the cryptocurrency, sparking speculation that he may be signaling something significant to the market. “17 years after the white paper, the bitcoin network is still operational and more resilient than ever,” Bessent posted, adding: “Bitcoin never shuts down,” in a jab at the U.S. Democratic Party over the ongoing U.S. government shutdown—“Senate Democrats could learn something from that.”
The bitcoin white paper, released by the enigmatic figure or collective known as Satoshi Nakamoto on October 31, 2008, spans a mere nine pages and details the operational framework of the bitcoin network. Bessent’s remarks were highlighted by bitcoin and crypto traders as an indication that the Trump administration continues to support the technology. “Pay attention to the signals. This is a signal,” stated James Lavish in a post. In August, Bessent sparked significant bitcoin price fluctuations by indicating that the U.S. government would not be acquiring more bitcoin for President Donald Trump’s proposed U.S. bitcoin reserve, which was intended to compete with the nation’s gold reserve.
He also disclosed that the U.S. possesses far fewer bitcoin than had been previously estimated. Bessent aimed to elucidate his remarks, stating: “Treasury is committed to exploring budget-neutral pathways to acquire more bitcoin to expand the reserve, and to execute on the president’s promise to make the United States the ‘bitcoin superpower of the world,'” and referring to the “bitcoin that has been finally forfeited to the federal government … the foundation of the strategic bitcoin reserve that president Trump established in his March executive order.” Since then, President Donald Trump has emerged as one of America’s largest bitcoin investors and has reaffirmed his commitment to establishing the U.S. as the crypto capital of the world.
In the current landscape, numerous bitcoin and crypto market traders are wagering that the anticipated bitcoin price rally initially expected in October will instead materialize in the last two months of the year. They cite the ongoing purchases of bitcoin by exchange-traded funds and the Federal Reserve’s potential for further interest rate cuts as key factors influencing this outlook. “Our base case sees bitcoin rising towards $140,000, with total ETF inflows between $10 and $15 billion not being surprising,” analysts with the crypto exchange Bitfinex stated in emailed comments. “Our view is that October demonstrated resilience, with an all-time-high crash and rebound marking a reset in the bull cycle.” November could see an extension of gains, potentially reaching the $140,000 base case, bolstered by ETF activity and a dovish Fed policy that supports the prevailing momentum. “For most investors, bitcoin continues to serve as a hedge amid currency volatility.”
