Bitcoin prices fell on Tuesday, as reports indicated that the U.S. government had mobilized $2 billion worth of tokens. The value of the world’s largest cryptocurrency had risen to $70,000 on Monday after Republican presidential candidate Trump promised friendlier legislation when he spoke at a Bitcoin conference over the weekend.
Trump pledged that the government would not sell any of its holdings if he were elected president, but he also refrained from announcing plans to create a strategic Bitcoin reserve. However, the former president said he would ease regulatory conditions for cryptocurrencies and work to better promote the industry compared to leading Democratic candidate Kamala Harris.
However, Bitcoin quickly reversed its course, dropping by 4.7% in the past twenty-four hours. Bitcoin’s losses were exacerbated by media reports indicating that the U.S. government had moved $2 billion worth of confiscated Bitcoin, raising renewed concerns about further selling pressure.
A government-linked wallet was seen transferring 29,800 tokens to two different addresses, possibly to a custody service. But token transfers usually precede sales, as was the case with the Mt. Gox exchange earlier in July. Reports indicate that the U.S. government holds confiscated tokens worth approximately $12 billion.
Cryptocurrency prices broadly showed a downward trend on Tuesday in conjunction with Bitcoin’s decline, amid caution ahead of the Federal Reserve meeting, which also impacted price pressures. Ethereum, the world’s second-largest cryptocurrency, also fell by 1.8% to $3,255.16, receiving little support from the recent launch of spot trading funds.
