Bitcoin Plummets to $73,000 as US Treasury Secretary Clarifies No Bailout Authority for Crypto Assets

[Para 1: The Lead] Bitcoin tumbled 2% to approximately $73,000 on Wednesday, marking a significant drop following the U.S. Treasury Secretary Scott Bessent's clarification that the government has no authority to bailout cryptocurrency assets. The announcement came during a heated exchange at the House Financial Services Committee. [Para 2-3: Supporting details & Context] Bessent, in response to a question about whether the U.S. Treasury could purchase Bitcoin or other cryptos, stated, "I do not have such authority, and as the Chair of the Financial Stability Oversight Council (FSOC), I also do not have this power." The decline was exacerbated by broader market selling pressures and warnings from prominent investor Michael Burry, who warned that continued Bitcoin price drops could trigger a "death spiral," causing substantial value destruction. Burry, known for accurately predicting the 2008 financial crisis, noted that Bitcoin has been revealed as purely a speculative asset, far from a safe haven like gold and other precious metals. Over the past five days, the global largest cryptocurrency has fallen by 13%. Last weekend, Bitcoin experienced a significant drop, hitting its lowest point since April last year, and has seen a fourth consecutive month of decline. The market sentiment shift is evident, with funds flowing away from Bitcoin, reflecting the fragility of the entire cryptocurrency market.