Bitcoin saw a slight decline on Tuesday, remaining below record highs amid market concerns over reports that the U.S. government had mobilized a portion of its seized coins from the Silk Road marketplace. The world’s largest cryptocurrency fell 0.8%, trading at $95,928.80 by 00:18 ET (05:18 GMT), staying below the $100,000 mark despite recent attempts to breach it during November’s rally.
The drop followed reports that the U.S. government had moved nearly 20,000 Bitcoin, valued at around $1.9 billion, to Coinbase. These coins, confiscated from the infamous Silk Road black market, represent approximately 10% of the government’s total Bitcoin holdings. Such a move typically signals the possibility of a sale, as the government has previously liquidated Bitcoin through similar transactions. However, the move may not indicate an imminent sale, given that Coinbase has a contract with the Justice Department to handle the government’s digital assets.
Meanwhile, most major altcoins outpaced Bitcoin, bolstered by expectations of crypto-friendly policies under President-elect Donald Trump. XRP saw significant gains, rising 11.3% to $2.7395, reaching a six-year high. The surge was driven by speculation that the U.S. Securities and Exchange Commission (SEC) may drop its long-standing lawsuit against Ripple, the issuer of XRP.
TD Cowen analysts, however, cast doubt on the possibility of a Bitcoin reserve under Trump’s administration. Despite some initial optimism following Trump’s election, analysts argued that Trump’s firm stance on preserving the dollar’s dominance would likely hinder any efforts to create a Bitcoin reserve. Establishing such a reserve would also require fiscal resources at a time when Republicans are focused on cutting government spending.
In other altcoin news, Ether dropped 1.1% to $3,653.11, while Solana fell 0.3%. Cardano surged by 12%, and Polygon gained nearly 18%. Meme coins, including Dogecoin, struggled, with the latter losing 3.8%.
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