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Bitcoin Faces Selling Pressure Amid U.S. Government Moves

Explore the latest Bitcoin price fluctuations due to U.S. government actions and regulatory updates, alongside broader cryptocurrency market trends.
Published on 2024-07-30

Bitcoin Price Fluctuation

Bitcoin experienced a significant price drop on Tuesday, reversing gains made over the weekend. This decline followed reports that the U.S. government mobilized $2 billion worth of seized Bitcoin, overshadowing optimistic regulatory comments by Donald Trump at a recent Bitcoin Conference. After reaching a high of $70,000, Bitcoin fell by 4.8% to $66,507.4.

U.S. Government Influence

The movement of Bitcoin by the U.S. government sparked fears of increased selling pressure. Reports indicated that 29,800 tokens were transferred, potentially to a custody service, a move often preceding sales. This stirred concerns reminiscent of the Mt Gox exchange incident, which had previously driven Bitcoin prices down to $54,000. The U.S. government holds approximately $12 billion in confiscated tokens, primarily from the Silk Road marketplace.

Trump's Stance on Crypto

Former President Donald Trump has pledged not to sell government-held Bitcoin if re-elected, though he did not commit to creating a strategic reserve. He promised to ease regulatory conditions for cryptocurrencies, aiming to outpace Democratic frontrunner Kamala Harris in fostering the crypto industry.

Broader Cryptocurrency Market Trends

The overall cryptocurrency market mirrored Bitcoin's downward trend. Ether decreased by 1.4% to $3,335.05, while XRP saw a 4% rise. ADA and SOL dropped by 3.3% and 6%, respectively, with meme tokens like DOGE and SHIB also experiencing losses. This dip coincides with market caution ahead of a Federal Reserve meeting, where interest rate decisions are anticipated.

SEC Developments in the Binance Case

In a related development, the U.S. SEC may drop charges against certain third-party tokens in its case against Binance. The SEC's potential amendment to its complaint could affect tokens like Solana's SOL and Polygon's MATIC, initially accused of being unregistered securities. This shift follows a court-ordered response outlining both parties' positions, indicating a possible change in the SEC's stance on these allegations.

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