A congressional hearing in the United States unexpectedly ignited market sentiment in the crypto space. During the House Financial Services Committee hearing, U.S. Treasury Secretary Scott Bessent was questioned by California Democratic Congressman Brad Sherman: “When Bitcoin prices plummet significantly, does the federal government have the authority to step in and ‘rescue Bitcoin’?” This question quickly spread on social media platforms, making “whether Bitcoin has government backing” a hot topic of discussion.
In response to the inquiry, Bessent clearly stated that, whether in his capacity as Treasury Secretary or as Chair of the Financial Stability Oversight Council, he has no authority to use public resources to support Bitcoin prices, nor can he instruct banks to buy the asset. This statement effectively reaffirmed to the market that Bitcoin is not protected by the U.S. government, and investment risks are entirely borne by individuals.
Currently, Bitcoin has fallen more than 40% from its all-time high and is below the high range set earlier in 2026. Bessent’s response was interpreted as a “risk-off signal,” and Bitcoin briefly weakened again during the trading session. Unlike traditional financial institutions that can receive policy support during crises, crypto assets remain in a “self-reliant” state.
It is worth noting that Bessent also mentioned another reality: some Bitcoin seized and held by U.S. law enforcement has generated substantial paper gains as prices rose. This is not an investment activity but passive holding, which also indirectly reflects Bitcoin’s high volatility.
In the latter part of the hearing, political friction intensified. New York Congressman Gregory Meeks engaged in a heated debate with Bessent over investigations into crypto companies linked to Trump, with the scene once becoming chaotic. These episodes highlight that, under the current regulatory framework, legislators still find it difficult to effectively address the boundaries between crypto assets and traditional finance.
For investors, this congressional dialogue sends a clear signal: Bitcoin will not receive a “safety net” at the federal level. Without policy intervention, price volatility may continue, and the market can only rely on its own supply, demand, and sentiment regulation. This also once again underscores the fundamental differences between decentralized assets and traditional financial systems.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Ledger Founder Kidnapping Suspect Arrested in Bitcoin Extortion Case
Police arrest a suspect linked to the kidnapping case of David Balland, co-founder of Ledger. The criminal group committed violence against him and his partner to extort bitcoin. International cooperation has intensified efforts to combat violent crimes targeting cryptocurrency, reminding holders to enhance security awareness.
GateNews9m ago
Bitcoin Market Sentiment Turns Defensive as $685 Million Put Bets Surge
Recent changes have emerged in the Bitcoin derivatives market, with traders investing approximately $685 million in put options over the past 30 days, reflecting cautious market sentiment. This shift demonstrates that investors are transitioning from offensive strategies to risk management, particularly amid growing macroeconomic uncertainty. Rising demand for put options typically signals future price risks, as investors seek to balance between controlling drawdowns and locking in gains.
GateNews28m ago
Altcoin Market Bottom Signal? Only 5% Above 200-Day Moving Average, Trading Volume Plummets 80%
The altcoin market is currently experiencing a severe correction, with approximately 95% of altcoins trading below their 200-day moving average. Trading volume has declined to approximately $7.7 billion, with continuous outflows of liquidity. Investors are showing a preference for highly liquid assets like Bitcoin, leading to diminished capital absorption capacity in the altcoin sector. Historical data indicates that such concentration typically appears at market bottoms, with capital potentially rotating toward altcoins in the future. The current market shows low activity and low valuations, with future trends likely to be influenced by macroeconomic liquidity conditions.
GateNews31m ago
H100 eyes Europe’s largest bitcoin treasury with 3,500 BTC in proposed acquistions
H100 Group plans to acquire Norwegian firms Moonshot AS and Never Say Die AS to triple its bitcoin holdings to around 3,500 BTC. This all-share deal aims to enhance H100’s institutional presence and liquidity while minimizing dilution for existing shareholders.
CoinDesk32m ago
Bitcoin and Gold Correlation Drops to Three-Year Low, Are Bottom Signals Emerging?
Bitcoin's correlation with gold has significantly declined, hitting its lowest level since 2022, which the market views as a potential cycle turning signal. Analysis suggests that Bitcoin may have entered a bottom-building phase, and whale addresses holding Bitcoin have increased, indicating that large capital is still positioning. Meanwhile, gold has formed a bearish structure, which may drive capital flows toward digital assets. In the short term, Bitcoin's movement is affected by macroeconomic data, but the overall structure demonstrates enhanced resilience.
GateNews34m ago
Mt. Gox After Four Months of Silence Moves Again, Small Bitcoin Transfer Sparks Speculation of Tens of Billions in Selling Pressure
On March 24, cryptocurrency platform Mt. Gox transferred a Bitcoin transaction valued at approximately $500, and although the amount was modest, it drew market attention. Mt. Gox currently still holds $2 billion in Bitcoin assets, with the transaction being interpreted as a potential repayment signal. The market is highly sensitive to its movements, which may impact investor expectations and market volatility. Analysts believe that every move by Mt. Gox carries significant market implications, and subsequent transfer activities will influence changes in Bitcoin's supply-side dynamics.
GateNews38m ago
