Investing.com — Bitcoin prices fell on Tuesday, largely reversing a weekend rally, as reports that the U.S. government had moved $2 billion worth of tokens largely offset optimism over Donald Trump's positive comments on regulation.
The world's largest cryptocurrency surged as much as $70,000 on Monday after Republican presidential candidate Trump promised friendlier regulations when he spoke at the Bitcoin Conference over the weekend.
But it quickly reversed course and fell 4.7% over the past 24 hours to 66,422.1 as of 01:37 ET (05:37 GMT).
US government moves $2 billion in Bitcoin
Bitcoin's losses were exacerbated by media reports that the US government had moved $2 billion worth of confiscated Bitcoin on Monday, sparking renewed concerns about further selling pressure on the token.
A government-associated wallet was observed transferring 29,800 tokens to two different addresses, possibly to a custodial service. But a token movement usually precedes a sale, as seen with the Mt Gox exchange in early July.
Fears of selling pressure stemming from Mt Gox distributions had pushed Bitcoin to a low of $54,000, though the token had since recovered and was on track for a monthly gain in July.
The US government is reportedly holding around $12 billion worth of confiscated tokens, most of which come from the now-defunct Silk Road marketplace.
Trump has promised that the government would not sell any of its holdings if he becomes president, but he has also stopped short of declaring plans to create a bitcoin strategic reserve.
Still, the former president said he would relax regulatory conditions for cryptocurrencies and foster the industry better than Democratic leader Kamala Harris.
Cryptocurrency price today: Altcoins follow Bitcoin's losses, Fed jitters also weigh in
Cryptocurrency prices were broadly lower on Tuesday, along with Bitcoin, with caution ahead of a Federal Reserve meeting also weighing on price pressures.
The world's No. 2 token fell 1.7% to $3,311.76, receiving little support from the recent launch of spot exchange-traded funds.
and sank between 1.8% and 6.1%, while among meme tokens, it sank 3.8% while losing 2.8%.
Cryptocurrencies were caught in a broader risk-off sentiment as caution persisted ahead of Wednesday's close.
While the central bank is widely expected to keep rates unchanged, traders will be watching to see if the bank signals any plans to cut interest rates.
