Bitcoin’s price plunged 4.8% on Tuesday, erasing a weekend rebound driven by Donald Trump’s positive remarks on crypto regulation. Reports emerged that the US government moved $2 billion worth of seized Bitcoin, sparking concern over potential selling pressure. This move echoes a similar event in July involving the Mt Gox exchange, which triggered a significant price drop.
The broader cryptocurrency market also trended lower, reflecting a general risk-off sentiment ahead of the Federal Reserve’s interest rate decision on Wednesday. While Trump promised friendlier regulations and no government sales of Bitcoin holdings, his comments lacked specific details on a potential Bitcoin reserve, leaving some investors unconvinced.
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Despite the downward trend, there is some positive news. The SEC indicated it might drop charges against certain third-party tokens, including Solana (SOL) and Polygon (MATIC), in its case against Binance. This development could potentially boost confidence in those tokens.
Bitcoin’s volatility highlights the market’s sensitivity to news and events. The potential for US government sales remains a significant concern, while the SEC’s actions toward Binance and altcoins offer a glimmer of hope for the industry.