July 30 2024: Bitcoin prices fell on Tuesday, reversing a weekend rebound due to reports that the U.S. government had mobilized $2 billion worth of tokens, which overshadowed optimism from positive comments on regulation by Donald Trump.
The world’s largest cryptocurrency had climbed as high as $70,000 on Monday after Republican presidential nominee Trump promised more favorable regulations during his speech at the Bitcoin Conference over the weekend.
However, Bitcoin quickly reversed, dropping 4.7% in the past 24 hours to $66,422.1 by 01:37 ET (05:37 GMT).
US Government Moves $2 Billion in Bitcoin
Bitcoin’s decline was intensified by media reports that the U.S. government had transferred $2 billion worth of seized Bitcoin on Monday, sparking concerns over increased selling pressure on the token.
A government-associated wallet was seen moving 29,800 tokens to two different addresses, potentially to a custody service. Historically, such token movements precede a sale, as seen with the Mt Gox exchange earlier in July.
Fears of selling pressure from distributions by Mt Gox had previously driven Bitcoin as low as $54,000, although the token had since rebounded, heading for a monthly gain in July.
The U.S. government reportedly holds about $12 billion worth of confiscated tokens, mainly from the now-defunct Silk Road marketplace.
Trump vowed that the government would not sell any of its holdings if he were elected president but stopped short of declaring plans to create a strategic Bitcoin reserve.
Nonetheless, the former President stated he would loosen regulatory conditions for crypto and foster the industry better than Democratic frontrunner Kamala Harris.
Altcoins Track Bitcoin Losses Amid Fed Jitters
Broader cryptocurrency prices fell in tandem with Bitcoin on Tuesday, with caution ahead of a Federal Reserve meeting adding to the downward pressure.
The world’s second-largest token, Ether, fell 1.7% to $3,311.76, receiving little support from the recent launch of spot exchange-traded funds.
XRP, ADA, and SOL dropped between 1.8% and 6.1%, while meme tokens DOGE and SHIB fell by 3.8% and 2.8%, respectively.
The crypto market was caught in a broader risk-off sentiment, as caution prevailed ahead of the Federal Reserve meeting’s conclusion on Wednesday.
While the central bank is widely expected to keep rates unchanged, traders will be watching closely for any signals about potential interest rate cuts.
