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 0.8% to $95,928.8 by 00:18 ET (05:18 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 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.
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.
But while Trump’s cabinet picks all harbor crypto-friendly views, doubts have emerged over the possibility of a reserve. The establishment of a reserve would also require fiscal funding to buy more Bitcoin, which appears unlikely in the face of a Republican-led Congress that aims to slash government spending.
Broader crypto prices mostly rallied past weakness in Bitcoin. World no.2 crypto Ether fell 1.1% to $3,653.11.
XRP rose further after its recent rally saw it become the world’s third-largest crypto. The altcoin rose 11.3% to $2.7395, hitting an over six-year high on speculation that a change in leadership at the SEC will see the agency drop its long-running lawsuit against Ripple.
Solana fell 0.3%, while Cardano surged 12%. Polygon rallied nearly 18%.
Meme tokens lagged, with Dogecoin losing 3.8%.
Source: Cryptocurrency - investing.com
