Bitcoin (BTC-USD) fell below $70,000 per token on Thursday after Treasury Secretary Scott Besant suggested the US government would not bail out the cryptocurrency.
During a heated back-and-forth during the House Financial Services Committee on Wednesday, Besant was asked whether the US Treasury has the authority to buy bitcoin or other cryptos.
“I don’t have the authority to do that, and I don’t have that authority as chairman of FSOC,” Besant said.
Bitcoin fell as low as $69,525 early Thursday, continuing Wednesday’s slide that followed Besant’s comments.
The fall was also fueled by a warning from prominent investor Michael Burry that widespread selling pressure in the market and a continued decline in bitcoin’s price could “set a death spiral in motion for massive price destruction.”
“Bitcoin is exposed as a purely speculative asset, and nowhere near the trading hedge that gold and other precious metals are,” Burry, who rose to fame after predicting the 2008 financial crisis, wrote on his Substack.
Thursday’s downward move only added to bitcoin’s recent rout. The world’s largest cryptocurrency is down nearly 20% year-to-date.
Bitcoin posted its fourth straight month of losses last weekend.
The move coincided with President Trump’s announcement last Friday that he would select Kevin Warsh to lead the Federal Reserve when Jerome Powell’s term ends in May, a nomination seen by markets as hawkish.
Ether (ETH-USD) and other digital tokens also fell.
Read more: How to navigate the crypto meltdown
After Bitcoin first broke through a key support level at $73,000, 10X Research strategists wrote that “the current flow has changed sentiment meaningfully.”
The firm’s strategists pointed to flow and position data, which indicated “investors are not yet in a position to buy the dip.”
“While sentiment and technical indicators have reached peak levels, the broader downtrend remains intact,” the researchers wrote. “In the absence of a clear catalyst, there is little urgency to act.”
The firm noted that traders are focused on reducing and unwinding their positions rather than preparing for a general snapback rally.
The pressure on digital assets reflected broader weakness in the crypto market. Aside from a brief bounce last month, bitcoin has struggled since October, when whale sales and forced liquidations rocked the industry.
