July 31 2024: Bitcoin’s price fell on Wednesday, continuing a recent decline as concerns about mass token sales by the U.S. government overshadowed some optimism about friendlier crypto regulations in the country.
Bitcoin decreased by 1% in the past 24 hours to $65,841.6 by 01:42 ET (05:42 GMT). Positive comments from Republican presidential candidate Donald Trump had pushed the token up to $70,000 over the weekend, but it quickly reversed course.
Risk-driven asset demand was also dampened by anticipation of a Federal Reserve interest rate decision and potential escalation in Middle East tensions after reports suggested Hamas chief Ismail Haniyeh was killed by an Israeli strike in Tehran.
US Government Sales Concerns Weigh on Bitcoin
Pressure on Bitcoin, the world’s biggest cryptocurrency, mainly stemmed from speculation about potential token sales by the U.S. government, which reportedly holds about $12 billion worth of tokens, making it one of the largest Bitcoin holders globally.
Media reports indicated that wallets associated with the government had moved $2 billion worth of Bitcoin seized from the online black market Silk Road to what might be a custody service.
Such significant token movements typically precede a sale, as observed with distributions by the defunct crypto exchange Mt. Gox earlier this month.
Distributions by Mt. Gox had pushed Bitcoin down to $54,000, though it later recovered on hopes of more favorable crypto regulations.
Trump reiterated his support for the crypto industry during a speech at the Bitcoin Convention in Nashville over the weekend. Many prominent figures in the crypto industry were seen either donating to entities associated with Trump’s campaign or expressing outright support for his presidency.
Crypto Prices Today: Altcoins Muted, XRP Outperforms on SEC Speculation
In broader crypto markets, most altcoins traded in a flat-to-low range as overall sentiment towards crypto remained subdued.
However, XRP stood out, rallying nearly 8% amid unfounded rumors that the Securities and Exchange Commission (SEC) was close to dropping its lawsuit against Ripple, the firm that issues XRP.
Other major altcoins remained relatively unchanged. Ether, the world’s second-largest token, fell 0.2% to $3,303.39 an ounce, while SOL and ADA increased by 0.5% and 0.8%, respectively.
Among meme tokens, DOGE fell by 2.5%, while SHIB dropped by 2%.
