Bitcoin slipped on Tuesday, remaining pinned below record highs as sentiment was rattled by reports that the U.S. government had mobilized some of its coins confiscated from the Silk Road marketplace.
The world’s largest cryptocurrency fell into a trading range below the $100,000 level in recent weeks, after largely failing to cross the coveted level during a rally through November. But it still remained close to recent record highs of over $99,000.
Bitcoin fell 1.8% to $94,111.0 by 09:03 ET (14:03 GMT).
Most major altcoins rallied past Bitcoin in anticipation of more friendly policies under President-elect Donald Trump. XRP was a major beneficiary of this trend, hitting an over six-year high on speculation that the SEC will drop its long-running lawsuit against issuer Ripple.
Bitcoin spooked by govt moving $1.9 bln Silk Road tokens
Bitcoin clocked some losses after Arkham Intelligence data showed the U.S. government had moved nearly 20,000 coins, worth about $1.9 billion, onto Coinbase (NASDAQ:COIN). Such a move usually heralds a sale event.
The coins were confiscated from the now defunct Silk Road online black market, and represent roughly 10% of the government’s overall Bitcoin stockpile, according to Arkham data.
The mobilization of tokens onto an exchange usually heralds a sale event, with the government having sold off tokens through similar channels in the past.
But the move may not necessarily herald a sale, given that Coinbase has a contract with the Justice Department’s U.S. Marshals Service to provide custody and trading of its digital assets.
Trump Bitcoin reserve appears unlikely- TD
TD analysts downplayed the possibility of a Bitcoin Strategic Reserve under Donald Trump, stating that the President-elect’s “ironclad” view that the dollar must remain the world’s reserve currency would stymie any attempts to hedge against the greenback.
Bitcoin’s latest rally was driven by optimism over Trump’s election victory, given that he promised to enact crypto friendly policies and potentially establish a Bitcoin reserve.
