Bitcoin‘s value dropped on Wednesday, extending a recent decline due to concerns over potential mass token sales by the U.S. government, which overshadowed optimism from more favorable cryptocurrency regulations. As of 01:42 ET (05:42 GMT), Bitcoin was down 1% in the past 24 hours, trading at $65,841.60. The cryptocurrency had surged to $70,000 over the weekend following supportive remarks from Republican presidential candidate Donald Trump, but quickly reversed its gains.
The decline in Bitcoin’s price was further influenced by market anticipation of an upcoming Federal Reserve interest rate decision and rising tensions in the Middle East. Reports of Hamas leader Ismail Haniyeh’s death in an Israeli strike in Tehran added to the uncertainty.
The primary pressure on Bitcoin came from speculation about potential sales of tokens held by the U.S. government, which is believed to own approximately $12 billion worth of Bitcoin. Recent media reports indicated that government-associated wallets had transferred $2 billion worth of Bitcoin seized from the Silk Road black market, potentially indicating an impending sale. Such significant token movements often precede sales, reminiscent of the impact from Mt. Gox’s distributions earlier this month, which had previously driven Bitcoin’s price down to $54,000 before a recovery spurred by more optimistic regulatory news.
In the broader cryptocurrency market, most altcoins displayed minimal movement, reflecting subdued market sentiment. However, XRP stood out with an 8% increase, fueled by speculative rumors that the Securities and Exchange Commission might soon drop its lawsuit against Ripple, the company behind XRP.
Among other major cryptocurrencies, Ether fell 0.2% to $3,303.39, while SOL and ADA saw modest gains of 0.5% and 0.8%, respectively. Meme tokens experienced declines, with DOGE down 2.5% and SHIB falling 2%.
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