Reasons Why XRP Suddenly Dropped Significantly

Watcher.Guru first noted a key statement from U.S. Treasury Secretary Scott Bessent—"We will not buy Bitcoin to hold for the government, instead we will rely on seized assets and stop selling." This clip, posted by Watcher.Guru on X, has prompted a rapid shift in cryptocurrency sentiment. Shocking Policy: Government Stops Buying Bitcoin In the video excerpt shared by Watcher.Guru, Minister Bessent clarified that the U.S. Department of the Treasury will not purchase any additional Bitcoin for its so-called strategic reserves. Instead, the government plans to preserve its existing Bitcoin holdings, primarily from previous seizures, and will stop selling more.

This announcement has directly undermined rumors regarding the purchases by organizations or governments that drive sustainable demand. Ripple Market: The Widespread Retreat of Cryptocurrency The market reacted quickly. Bitcoin, which had previously surged to around $124,000 - a new all-time high thanks to capital inflows from institutions and supportive cryptocurrency policies - has dropped back down to around $119,000 as traders became aware of the implications of the event. Meanwhile, other major coins are following suit. Ethereum has slightly decreased, while altcoins, including XRP, are facing stronger downward pressure. Why Did XRP Drop the Most As of the time of reporting, XRP is trading at around $3.13, down nearly 4 percent on the day, compared to a previous high of about $3.34. The sharper decline of XRP stems from its position as a speculative altcoin - not a "store of value" as positioned by policy like Bitcoin. Market participants have quickly pulled away from riskier investments amid increasing instability. With the price of XRP being heavily influenced by sentiment, ETF speculation, and legal stories, the halt in new demand due to the driving policy has accelerated profit-taking activities. Temporary Retreat or Revaluation? This policy disclosure removes a pillar of short-term demand for Bitcoin and, by extension, speculative capital, lowering risk in the cryptocurrency ecosystem. XRP may continue to be volatile until new catalysts emerge - such as regulatory clarity, ETF approval, or strong adoption signals. In the meantime, the video from Watcher.Guru remains the primary reference for understanding this dynamic shift in government attitudes towards cryptocurrency reserves.