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Yo_Mama_Been_Loggin

(136,972 posts) Wed Feb 4, 2026, 10:13 PM Feb 2026

Bitcoin sinks after Treasury Secretary Bessent says US government can't tell banks to bail out crypto

Source: Yahoo Finance

Bitcoin (BTC-USD) fell 2% on Wednesday to around $73,000 per token after Treasury Secretary Scott Bessent suggested the US government would not bail out the cryptocurrency.

In a heated back-and-forth during a House Financial Services Committee hearing, Bessent was asked if the US Treasury had the authority to buy bitcoin or other cryptos.

"I do not have the authority to do that, and as chair of FSOC, I do not have that authority," Bessent stated.

The decline on Wednesday was also fueled by the broader selling pressure in markets and a warning from notable investor Michael Burry that a sustained decline in bitcoin's price could "set in motion a death spiral leading to massive value destruction."

Read more: https://finance.yahoo.com/news/bitcoin-sinks-after-treasury-secretary-bessent-says-us-government-cant-tell-banks-to-bail-out-crypto-195504406.html

Nor should we. Though I wouldn't be surprised if Bessent's boss would pressure him to bail it out.

20 replies

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Highlight:

Bitcoin sinks after Treasury Secretary Bessent says US government can't tell banks to bail out crypto (Original Post) Yo_Mama_Been_Loggin Feb 2026 OP

No they shouldn't bailout that pseudo pyramid scheme. lostincalifornia Feb 2026 #1

I never understood the value of the record of a transaction ClaudetteCC Feb 2026 #4

Sure, it's just numbers in the cloud, but .... reACTIONary Feb 2026 #8

etherium has better use cases than bitcoin ClaudetteCC Feb 2026 #9

ETF's? At least.. reACTIONary Feb 2026 #14

Decentralized Applications or 'dApps' ClaudetteCC Feb 2026 #19

iirc etherium was designed specifically for dApp 'smart contracts' ClaudetteCC Feb 2026 #20

You forgot drugs and child porn.... nt Shipwack Feb 2026 #10

I stick with what I know.... reACTIONary Feb 2026 #12

So they hid all the QE in crypto bucolic_frolic Feb 2026 #2

It seems the price of 'homes' even with inflation ClaudetteCC Feb 2026 #5

Good point bucolic_frolic Feb 2026 #16

Sounds like dweller Feb 2026 #3

Crypto is simply canned air. It has no intrinsic value. All it will take is for one large holder to sell off a flashman13 Feb 2026 #6

Bitcoin has fallen 43% since its $126,000 all-time high back in October progree Feb 2026 #7

Well... OldBaldy1701E Feb 2026 #11

HA HA. pansypoo53219 Feb 2026 #13

"value destruction" of cryptocurrency has a nice ring to it. (nt) pat_k Feb 2026 #15

that means they will. Javaman Feb 2026 #17

That's the only reason bitcoin and other crypto started climbing after Trump took office. ChicagoTeamster Feb 2026 #18

lostincalifornia

(5,490 posts)

1. No they shouldn't bailout that pseudo pyramid scheme.

Reply to Yo_Mama_Been_Loggin (Original post)

Wed Feb 4, 2026, 10:17 PM

Feb 2026

ClaudetteCC

(188 posts)

4. I never understood the value of the record of a transaction

Reply to lostincalifornia (Reply #1)

Wed Feb 4, 2026, 10:30 PM

Feb 2026

While capped at 21m it is really an electronic form of 'ledger paper.' Yes, I get hashes and blocks and chains of blocks and all that but I just don't see a conversion to dollars from that other than 'scarcity.'

reACTIONary

(7,271 posts)

8. Sure, it's just numbers in the cloud, but ....

Reply to ClaudetteCC (Reply #4)

Wed Feb 4, 2026, 10:58 PM

Feb 2026

.... it has a couple of killer-app use cases: Money laundering and ransom payments!

ClaudetteCC

(188 posts)

9. etherium has better use cases than bitcoin

Reply to reACTIONary (Reply #8)

Wed Feb 4, 2026, 11:07 PM

Feb 2026

reACTIONary

(7,271 posts)

14. ETF's? At least..

Reply to ClaudetteCC (Reply #9)

Wed Feb 4, 2026, 11:57 PM

Feb 2026

... trading cards are rather benign. Not good for supporting criminal enterprises.

ClaudetteCC

(188 posts)

19. Decentralized Applications or 'dApps'

Reply to reACTIONary (Reply #14)

Thu Feb 5, 2026, 01:33 PM

Feb 2026

https://en.wikipedia.org/wiki/Decentralized_application

ClaudetteCC

(188 posts)

20. iirc etherium was designed specifically for dApp 'smart contracts'

Reply to reACTIONary (Reply #14)

Thu Feb 5, 2026, 01:37 PM

Feb 2026

Shipwack

(3,097 posts)

10. You forgot drugs and child porn.... nt

Reply to reACTIONary (Reply #8)

Wed Feb 4, 2026, 11:26 PM

Feb 2026

reACTIONary

(7,271 posts)

12. I stick with what I know....

Reply to Shipwack (Reply #10)

Wed Feb 4, 2026, 11:44 PM

Feb 2026

.... Oh, wait! Let me take that back!

bucolic_frolic

(55,671 posts)

2. So they hid all the QE in crypto

Reply to Yo_Mama_Been_Loggin (Original post)

Wed Feb 4, 2026, 10:21 PM

Feb 2026

In 2008 it was hidden in the price of homes. But a lot of people will implode if crypto falls. Massive value destruction indeed.

ClaudetteCC

(188 posts)

5. It seems the price of 'homes' even with inflation

Reply to bucolic_frolic (Reply #2)

Wed Feb 4, 2026, 10:36 PM

Feb 2026

have currently (in the USA) far exceeded the 2008 price.

bucolic_frolic

(55,671 posts)

16. Good point

Reply to ClaudetteCC (Reply #5)

Thu Feb 5, 2026, 07:17 AM

Feb 2026

There's plenty of slush fund to go around. Imagine the price of either asset - housing or crypto - without the sponge effect of the other.

dweller

(28,620 posts)

3. Sounds like

Reply to Yo_Mama_Been_Loggin (Original post)

Wed Feb 4, 2026, 10:26 PM

Feb 2026

They were depending on a bailout … too bad so sad

✌🏻

flashman13

(2,541 posts)

6. Crypto is simply canned air. It has no intrinsic value. All it will take is for one large holder to sell off a

Reply to Yo_Mama_Been_Loggin (Original post)

Wed Feb 4, 2026, 10:51 PM

Feb 2026

significant amount of coins all at once. That will cause the next two holders to sell while the price is still high. Next thing you know there is a mass stampede for the door. In very short order prices collapse and it all becomes worthless. That would probably be okay, but because of lax regulation, it is possible to collateralize real world loans with bitcoin. If bitcoin goes south, all those loans go south too. It's effectively what happened in 1929 all over again.