Bitcoin has rebounded sharply this week after a dramatic drop, with the price rising above $70,000 just 24 hours after falling to $60,000. The sudden recovery has sparked widespread speculation about U.S. government involvement.
CNBC host Jim Cramer suggested on air that the Trump administration may have bought bitcoin during the dip. Cramer referred to a U.S. bitcoin strategic reserve, created by executive order last year, that is stocked with bitcoin seized by law enforcement. His comments quickly went viral, racking up millions of views across social media platforms.
Market commentators and crypto analysts have described the rumors as “wild” but “bullish” for bitcoin. Several crypto-focused social media accounts amplified Cramer’s claim, contributing to the rapid market recovery.
Despite the speculation, there has been no official confirmation from the U.S. government. Treasury Secretary Scott Bessent recently told lawmakers that the government does not have the authority to invest taxpayer dollars in bitcoin. He added that the U.S. only retains bitcoin seized through legal channels.
Bessent confirmed that the seized bitcoin’s value has grown significantly. Of $1 billion in bitcoin seized, $500 million was retained and has now risen to over $15 billion.
This week’s bitcoin volatility coincided with broader sell-offs in the stock market, gold, and silver. Critics pointed to the crash as a potential setback for Trump’s cryptocurrency strategy. The White House, however, reaffirmed its commitment to maintaining a leadership role in crypto and emerging technologies.
The Trump administration has indicated that any additions to the strategic reserve would be done in a cost-neutral manner, without using taxpayer money.
Analysts warn that bitcoin’s price could remain volatile, and investors are watching developments closely. Meanwhile, social media-fueled speculation continues to influence market sentiment.
Follow on Google News
