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U.S. Treasury Suspension: The U.S. Treasury has suspended Bitcoin acquisitions due to ongoing geopolitical tensions and concerns over fiscal stability, as stated by Treasury Secretary Scott Bessent.
Market Reaction: Following the suspension, Bitcoin's price dropped below $115,000, with significant market liquidation exceeding $963 million, indicating a swift response from traders.
Geopolitical Influence: Anticipation of high-level diplomatic meetings has added to market uncertainty, affecting not only Bitcoin but also Ethereum, which saw notable declines.
Historical Context: The current situation reflects past instances where policy changes have led to market corrections, highlighting the interconnectedness of regulatory actions and cryptocurrency price fluctuations.
