BTC and XRP Price Prediction As Treasury Secretary Bessent Warns “US Won’t Bail Out Bitcoin”

Bitcoin and XRP prices experienced significant declines as bearish sentiment gripped the cryptocurrency market. Bitcoin saw a sharp drop of over 6.5%, falling below $70,000 in the last 24 hours. XRP, too, was down by nearly 10%, trading below $1.40.

The broader crypto market suffered a 7% loss, bringing its total value to $2.37 trillion.

Ethereum (ETH) and Solana (SOL) were not immune to the downturn, reflecting the widespread impact of the Bitcoin-led liquidation wave. Treasury Secretary Bessent’s recent comments, stating that the US will not intervene to bail out Bitcoin, likely contributed to the cautious mood among investors.

U.S. Treasury Rules Out Bitcoin Bailout Amid Market Risks

U.S. Treasury Secretary Scott Bessent has confirmed there will be no bailout for Bitcoin during market volatility. The declaration was issued following questioning by Congressman Brad Sherman during a congressional hearing that occurred on Wednesday.

Bessent clarified that the Treasury and the Federal Open Market Committee have no power to fund Bitcoin. He also indicated that the private banks have no intentions of being forced to buy Bitcoin or the memecoins, such as the Trump Coin.

The U.S. already possesses more than $15 billion in Bitcoin, which was first acquired in case of crimes when it was only worth half a billion. Bessent stressed that increasing Bitcoin reserves should rely on a budget-neutral approach, as a Trump executive order in 2025.

Such plans involve the conversion of currently held reserve assets, including gold or oil, to Bitcoin, and preventing new expenditures. Nevertheless, a lot of people within the crypto community feel that the policy is yet to show its real commitment.

Without market support from the government, BTC and XRP prices could face increased volatility ahead.

Bitcoin Price Crashes Below $70k; What Next?

BTC price continued its downward trajectory, slipping 6% in the last 24 hours to $68,248. The fall dropped BTC price below the $70,000 mark, which is an indicator of the overall market weakness. The heatmap of liquidity has pointed out the $70k mark as an important technical point. A decisive drop below this support level may cause a quick fall into the high $60,000 scale.

The price drop was accompanied by major liquidations in the crypto market, amounting to more than $1 billion. Out of these, about 980 million were long positions, implying that bulls were taken by surprise when prices fell. 

To exert more pressure on the market, U.S.-listed spot Bitcoin ETFs experienced cumulative net outflows amounting to $545 million. Notably, the BlackRock IBIT fund experienced the highest single-day withdrawal of $373 million.

With Bitcoin still under bearish influence and losing more support at $68K, it is likely to fall further to around $60,000 in the next few days. 

Nevertheless, a general recovery of the market may result in a reversal, and the market might advance to levels above the 80,000 mark as per the full Bitcoin forecast report.

XRP Price Prediction: Is a Drop to $1.20 Next as Selling Pressure Intensifies?

XRP mirrored Bitcoin’s weakness, plunging 12% to $1.36 within 24 hours. The price of XRP fell below the $1.40 mark in the face of intense selling and worsening technical conditions.

At the time of writing, XRP price hovered near $1.37, echoing the overall risk-off sentiment engulfing crypto markets.

The derivatives trade was not strong, and the demand for XRP spot ETFs was low, with only 5 million in net inflows on Wednesday. The trading volume in the market also increased by 63% in, an indication of panic selling.

The price of XRP can be supported at around $1.34 in case Bitcoin price remains in the range of $69,000. Any further break would see the market open to a fall in the range of $1.20. Conversely, the market will respond favorably, and XRP will go above $1.40 on the upward trend.

To sum up, the Bitcoin and XRP prices are still subject to intense selling pressure since the U.S. disapproved of bailouts. Crypto markets can remain volatile without institutional backing. Short-term direction will be based on key support levels, and recovery will be based on renewed investor confidence and macro stability.