Investing.com — Bitcoin price fell on Wednesday, extending a recent decline as fears over massive token sales by the U.S. government largely offset some optimism about friendlier crypto regulations in the country.
The token fell 1% over the past 24 hours to $65,841.6 as of 01:42 ET (05:42 GMT). Positive comments from Republican presidential candidate Donald Trump sent the token up to $70,000 over the weekend, before the token quickly reversed course.
Appetite for risky assets was also undermined by anticipation of a Federal Reserve interest rate decision as well as a possible escalation in Middle East tensions after reports that Hamas chief Ismail Haniyeh was killed in an Israeli strike in Tehran.
The spectre of US government sales weighs on Bitcoin
The pressure on the world's largest cryptocurrency came primarily from speculation about possible token sales by the US government, which reportedly holds around $12 billion worth of tokens and is among the world's largest Bitcoin holders.
Media reports said wallets associated with the government had transferred $2 billion worth of Bitcoin confiscated from the online black market Silk Road, to what could potentially be an escrow service.
But a symbolic move of that magnitude usually heralds a sell-off, as seen with distributions from the defunct Mt Gox cryptocurrency exchange earlier this month.
Mt Gox distributions had knocked Bitcoin down to $54,000, though the token recovered on the prospect of friendlier crypto regulations.
Trump reiterated his support for the cryptocurrency industry during a speech at the Bitcoin Convention in Nashville over the weekend. A slew of prominent figures in the cryptocurrency industry were seen donating to entities associated with Trump’s campaign or expressing direct support for his presidency.
Cryptocurrency Price Today: Altcoins Remain Low, XRP Beats Expectations Amid SEC Speculation
Among the broader cryptocurrency markets, most altcoins moved in a flat to lower range as sentiment towards cryptocurrencies remained largely subdued.
But it was an exception, rising nearly 8% amid unfounded rumors that the Securities and Exchange Commission was close to dropping its lawsuit against Bitcoin Cash, the company that issues XRP.
The broader altcoins moved in a flat-to-low range. The world's No. 2 token fell 0.2% to $3,303.39 an ounce, while Bitcoin rose 0.5% and 0.8%, respectively.
Among meme tokens, it fell by 2.5%, while it sank by 2%.
