Market reaction to U.S. Treasury comments
Dogecoin slid sharply today, down 7.9% over the past 24 hours, as selling pressure hit the broader crypto market. The decline followed U.S. Treasury Secretary Scott Bessent’s announcement that the government would not be purchasing more Bitcoin for its strategic reserve. This move disappointed many traders who had expected bullish momentum from potential large-scale government buying.
Impact on Dogecoin and the wider market
The drop in Dogecoin mirrored losses across other speculative cryptocurrencies, with Bitcoin and Ethereum also moving lower. However, the percentage decline for Dogecoin was steeper than for the leading digital assets. This reflects the coin’s higher volatility and sensitivity to shifts in market sentiment. When investors move to safer positions, riskier assets like Dogecoin are often sold off first.
What the Treasury Secretary said
Speaking on Fox Business’ Mornings with Maria, Bessent made it clear the federal government would not buy Bitcoin beyond what it already holds through seized assets. “We’ve also started to get into the 21st century, a Bitcoin Strategic Reserve. We’re not going to be buying that, but we’re going to use confiscated assets and continue to build that up. We’re going to stop selling that,” he said. While the comment indicated the U.S. would keep Bitcoin in its possession, it signaled no fresh demand from the government — news that weighed on Dogecoin and the crypto sector.
Why the news matters for Dogecoin investors
For Dogecoin holders, this announcement is important because government buying could have boosted confidence across the crypto space. A large institutional player like the U.S. Treasury stepping in might have triggered a rally in major coins and spilled over into altcoins. Without that catalyst, Dogecoin is left to rely on organic demand and broader market momentum.
Broader economic backdrop
The pullback in Dogecoin also comes as the S&P 500 and Nasdaq Composite experienced slight declines. In risk-off market environments, traders tend to reduce exposure to volatile assets like Dogecoin. Coupled with the absence of new government-driven demand for Bitcoin, the tone across crypto trading desks has shifted to caution.
Short-term outlook for Dogecoin
In the near term, Dogecoin could face continued volatility as traders reassess their positions. If Bitcoin stabilizes and recovers, Dogecoin may regain some of its lost ground. However, without a clear bullish driver, price action could remain choppy. For speculative traders, this may present both short-selling opportunities and quick rebound trades, depending on market momentum.
Long-term perspective for Dogecoin
Long-term Dogecoin investors may see this dip as part of the coin’s normal volatility cycle. The project’s strong community and consistent presence in pop culture continue to support interest. However, Dogecoin will likely remain tied to the overall health of the crypto market and Bitcoin’s price trajectory.