Bitcoin
falls to $66K as US selloff fears offset Trump boost By Investing.com
Investing.com– Bitcoin’s price fell on Tuesday, largely reversing a weekend rally, as reports that the U.S. government had mobilized $2 billion in tokens largely offset optimism over Donald Trump’s positive regulatory comments.
The world’s largest cryptocurrency surged as high as $70,000 on Monday after Republican presidential candidate Trump promised more friendly regulations while speaking at the Bitcoin Conference over the weekend.
But it quickly reversed course, falling 4.7% in the past 24 hours to 66,422.1 as of 01:37 ET (05:37 GMT).
US government seen moving $2 billion in Bitcoin
Bitcoin’s losses were exacerbated by media reports that the U.S. government had moved $2 billion worth of seized Bitcoin on Monday, sparking fresh concerns about further selling pressure on the token.
A government-linked wallet was seen transferring 29,800 tokens to two different addresses, potentially to a custodial service. But a token move often precedes a sale, as seen with the Mt Gox exchange in early July.
Fears of selling pressure stemming from Mt Gox distributions sent Bitcoin tumbling to $54,000, although the token has since recovered and is on track for a monthly gain in July.
The US government reportedly holds around $12 billion in confiscated tokens, most of which came from the now-defunct Silk Road marketplace.
Trump has promised that the government will not sell any of its holdings during his presidency. But he has also stopped short of declaring plans to create a strategic reserve of Bitcoin.
Still, the former president said he would ease regulatory conditions for cryptocurrencies and promote the sector better than Democratic Party frontrunner Kamala Harris.
Cryptocurrency Price Today: Altcoins Track Bitcoin Losses, Fed Jitters Also in Play
Broader cryptocurrency prices trended lower on Tuesday, along with Bitcoin, with caution ahead of a Federal Reserve meeting also weighing on price pressures.
The world’s No. 2 token fell 1.7% to $3,311.76, receiving little support from the recent launch of spot exchange-traded funds.
and sank between 1.8% and 6.1%, while among meme tokens, it sank 3.8% and lost 2.8%.
Cryptocurrencies were caught up in a broader risk-off sentiment as caution persisted ahead of the conclusion of a meeting on Wednesday.
While the central bank is widely expected to keep rates unchanged, investors will be watching to see if the bank signals any plans to cut interest rates.