Investing.com-- Bitcoin price fell on Tuesday, largely reversing a weekend rebound as reports that the U.S. government had mobilized $2 billion worth of tokens largely offset optimism over positive comments on regulation from Donald Trump.
The world’s biggest cryptocurrency had risen as far as $70,000 on Monday after Republican presidential nominee Trump promised friendlier regulations when speaking at the Bitcoin Conference over the weekend.
But Bitcoin swiftly reversed course, falling 4.7% in the past 24 hours to 66,422.1 by 01:37 ET (05:37 GMT).
US government seen moving $2 bln of 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 renewed concerns over more selling pressure on the token.
A wallet associated with the government was seen transferring 29,800 tokens to two different addresses, potentially to a custody service. But a movement of tokens usually precedes a sale, as seen with the Mt Gox exchange earlier in July.
Fears of selling pressure stemming from distributions from Mt Gox had driven Bitcoin as low as $54,000, although the token had since rebounded and was headed for a monthly gain in July.
The U.S. government reportedly holds about $12 billion worth of confiscated tokens, a bulk of them coming from the now defunct Silk Road marketplace.
Trump vowed that the government will not sell any of its holdings in the event of his presidency. But he also stopped shy of declaring plans to create a strategic reserve of Bitcoin.
Still, the former President said he will loosen regulatory conditions for crypto and foster the industry better than Democratic frontrunner Kamala Harris.
Crypto price today: altcoins track Bitcoin losses, Fed jitters also in play
Broader cryptocurrency prices trended lower on Tuesday in tandem with Bitcoin, with caution before a Federal Reserve meeting also factoring into pressures on prices.
World no.2 token Ether fell 1.7% to $3,311.76, taking little support from the recent launch of spot exchange-traded funds.
XRP, ADA and SOL sank between 1.8% and 6.1%, while among meme tokens, DOGE sank 3.8% while SHIB lost 2.8%.
Crypto was caught in a broader risk-off sentiment as caution persisted before the conclusion of a Fed meeting on Wednesday.
While the central bank is widely expected to keep rates unchanged, traders will be watching whether the bank signals any plans to cut interest rates.