Bitcoin
falls to $66.5K as US selloff fears offset Trump boost By Investing.com
Investing.com– Bitcoin’s price fell on Tuesday, largely reversing a weekend rally, as reports that the U.S. government had mobilized $2 billion in tokens largely offset optimism over Donald Trump’s positive regulatory comments.
The world’s largest cryptocurrency surged as high as $70,000 on Monday after Republican presidential candidate Trump promised more friendly regulations while speaking at the Bitcoin Conference over the weekend.
But it quickly reversed course, falling 4.8% in the past 24 hours to $66,507.4 as of 8:25 a.m. ET (12:25 p.m. GMT).
US government seen moving $2 billion in Bitcoin
Bitcoin’s losses were exacerbated by media reports that the U.S. government had moved $2 billion worth of seized Bitcoin on Monday, sparking fresh concerns about further selling pressure on the token.
A government-linked wallet was seen transferring 29,800 tokens to two different addresses, potentially to a custodial service. But a token move often precedes a sale, as seen with the Mt Gox exchange in early July.
Fears of selling pressure stemming from Mt Gox distributions sent Bitcoin tumbling to $54,000, although the token has since recovered and is on track for a monthly gain in July.
The US government reportedly holds around $12 billion in confiscated tokens, most of which came from the now-defunct Silk Road marketplace.
Trump has promised that the government will not sell any of its holdings during his presidency. But he has also stopped short of declaring plans to create a strategic reserve of Bitcoin.
Still, the former president said he would ease regulatory conditions for cryptocurrencies and promote the sector better than Democratic Party frontrunner Kamala Harris.
Cryptocurrency Price Today: Altcoins Track Bitcoin Losses, Fed Jitters Also in Play
Broader cryptocurrency prices trended 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 1.4% to $3,335.05, receiving little support from the recent launch of spot exchange-traded funds.
rose by about 4%, while and sank by 3.3% and 6%, respectively. Among meme tokens, it fell by 3.5% while it lost 2.5%.
Cryptocurrencies were caught up in a broader risk-off sentiment as caution persisted ahead of the conclusion of a meeting on Wednesday.
While the central bank is widely expected to keep rates unchanged, investors will be watching to see if the bank signals any plans to cut interest rates.
SEC May Drop Charges Against SOL and Other Third-Party Tokens in Binance Case
In other crypto-related developments, new filings indicated that the US SEC may drop its charges against certain third-party tokens, including Polygon’s SOL and MATIC, which were part of its case against Binance.
According to a court document filed Tuesday, the SEC informed the defendants, Binance and its affiliated entities, that it “intends to seek leave to amend its complaint, including with respect to the ‘Third Party Cryptocurrency Securities’… avoiding the need for the Court to issue a ruling as to the sufficiency of the allegations regarding those tokens at this time.”
This issue gained attention during a July 9 hearing, when Binance lawyers interpreted Judge Amy Berman Jackson’s June 28 ruling on Binance’s motion to dismiss the SEC case as excluding third-party tokens from the case.
However, the judge clarified that this was not her intention. Third-party tokens are digital assets issued by companies other than Binance but listed on its exchange. The 10 tokens named in the SEC’s complaint are SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI. The SEC alleged that these tokens are unregistered securities.
Tuesday’s filing was a court-ordered joint response outlining both sides’ positions on how to proceed. The judge was expected to revisit the role of third-party tokens in the SEC’s ongoing case against Binance. However, it now appears the SEC may be changing its stance and may withdraw this portion of its pleadings.
As a result, the defense wants to see the complaint amended before proceeding with the discovery process.
“Until defendants have a set of proposed amended pleadings before them, it is premature and unreasonable for the SEC to expect them to agree to conduct discovery on the merits of claims on which the SEC may soon seek permission to amend their pleadings,” the filing states.