Bitcoin surged to nearly $70,000 on Monday before dipping by as much as 2.2% to $66,482 in New York trading, retreating from a six-week high as traders redirected their attention to speculation that the US government may sell seized tokens soon after former President Donald Trump committed to forming a government-controlled stockpile of the cryptocurrency if re-elected.
The US reportedly transferred $2 billion worth of Bitcoin to a new digital wallet address on Monday, according to blockchain research firm Arkham’s post on X social media platform. Analysts suggest that these tokens may originate from the Silk Road dark web marketplace, known for illicit transactions before its closure.
Shiliang Tang, president of Arbelos Markets, remarked, “Despite the optimism stemming from the Bitcoin 2024 conference related to Trump’s comments and Senator Lummis’ reserve bill, the market is grappling with significant supply concerns.”
Spencer Hallarn, global head of OTC trading at GSR, noted, “Ahead of President Trump’s recent speech at the Bitcoin Conference, there was substantial short-term call buying. As the event concluded, option buyers have begun unwinding these positions, resulting in selling pressure on Bitcoin.”
Trump, during the conference, vowed to make the US the leading hub for cryptocurrencies if he wins the upcoming election. Some traders interpreted the government’s token movement as a deliberate act, while Trump also declared that he would not sell seized crypto but establish a strategic Bitcoin reserve.
Chris Weston, head of research at Pepperstone Group, emphasized that Trump’s stance at the event solidified Bitcoin’s status as a significant factor in the election. In the midst of these developments, the market awaits the Federal Reserve’s meeting later this week, anticipating signals for a potential rate-cutting cycle which has bolstered market sentiment.
