Bitcoin has fallen to new lows in this bear cycle, dropping below the psychological $60,000 level. This comes amid the U.S.-Iran war, which has remained muted for a while. At the same time, U.S. Treasury Scott Bessent provided an update on the Strategic BTC Reserve.
Price Falls Amid Developments With Bitcoin Reserves
BTC has fallen to its lowest level since it topped in October 2025, dropping to around $59,000 yesterday, taking out the February low of $60,000. This also marks the lowest point since the U.S.-Iran war began towards the end of February. This crash for BTC has come amid the Strategy’s sale from its BTC Reserve, with the company selling 32 BTC.
This marked the first time Strategy had sold BTC from its Bitcoin Reserve since 2022, when it sold for tax-loss harvesting. Notably, Bitcoin was trading at above $71,000 prior to Strategy’s filing, which revealed the sale. Since then, the leading crypto has been on a decline, down over 17% this week.
However, Michael Saylor has indicated that the BTC decline isn’t due to the sale from their BTC reserve but rather the flow of liquidity from crypto towards building AI infrastructure. He also noted that Bitcoin ETFs have seen $4 billion in outflows since mid-May, thereby putting pressure on the BTC price.
It is worth noting that the U.S.-Iran war has receded into the background during this period, with BTC largely unaffected by recent developments. Earlier this week, U.S. President Donald Trump revealed that talks between the U.S. and Iran were still ongoing, despite reports that negotiations had paused. However, BTC remained largely unchanged and continued its decline, falling below $70,000.
Scott Bessent Gives Update On U.S. BTC Reserve
Speaking during a hearing before the Senate Finance Committee, US Treasury Secretary Scott Bessent said that the plans to create a Strategic Bitcoin Reserve were moving with deliberate speed. However, he noted that BTC is a new technology, and so creating the reserve hasn’t been straightforward.
Last year, President Trump signed an executive order establishing a Strategic Bitcoin Reserve. The U.S. Treasury is tasked with setting up this initiative and mapping out budget-neutral ways to accumulate more BTC. The executive order stated that seized BTC should be used to set up this reserve, with the U.S. currently holding 328,372 BTC, according to BitcoinTreasuries data.
Meanwhile, U.S. lawmakers are currently working on ways to codify the Strategic Bitcoin Reserve executive order. U.S. Rep. Nick Begich recently unveiled the ‘American Reserve Modernization Act,’ which establishes a BTC Reserve and mandates that the U.S. Treasury explore budget-neutral ways to accumulate more BTC.
At the time of writing, the Bitcoin price is trading at around $60,000, down over 5% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
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