Bitcoin Price Dips Amid U.S. Government Activity
Bitcoin price dipped on Tuesday, largely reversing a weekend rebound as reports surfaced that the U.S. government had mobilized $2 billion worth of tokens. This overshadowed optimism from Donald Trump’s positive comments on regulation.
The world’s biggest cryptocurrency had risen to $70,000 on Monday after Trump promised friendlier regulations at the Bitcoin Conference over the weekend. However, Bitcoin quickly reversed course, falling 4.8% in the past 24 hours to $66,507.4 by 08:25 ET (12:25 GMT).
U.S. Government Seen Moving $2 Billion of Bitcoin
The dip was exacerbated by reports that the U.S. government had transferred $2 billion worth of seized Bitcoin on Monday, raising concerns about potential selling pressure. A wallet linked to the government transferred 29,800 tokens to two addresses, likely for custody services, which could precede a sale like what occurred with the Mt. Gox exchange in July.
The U.S. government reportedly holds about $12 billion worth of confiscated tokens, mainly from the defunct Silk Road marketplace. Trump stated that he would not sell any of its holdings if he became president but did not confirm plans to create a strategic reserve of Bitcoin. He emphasized that he would loosen regulatory conditions for crypto.
Broader Crypto Price Trends
On Tuesday, broader cryptocurrency prices fell alongside Bitcoin, with traders cautious ahead of a Federal Reserve meeting. Ethereum (ETH) dropped 1.4% to $3,335.05, while XRP rose 4%. Other altcoins such as ADA and SOL fell by 3.3% and 6%, respectively, while meme tokens DOGE and SHIB lost 3.5% and 2.5%.
SEC Developments in Binance Case
In other news, the U.S. SEC may drop its charges against certain third-party tokens, including Solana’s (SOL) and Polygon’s (MATIC), in its case against Binance. According to a court filing, the SEC intends to amend its complaint regarding “Third Party Crypto Asset Securities,” suggesting a potential shift in their position about these tokens being considered unregistered securities.
The defense team for Binance is looking to see the amended complaint before proceeding with further discovery as clarity on the allegations is needed.
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