Bitcoin dipped slightly on Tuesday, staying below record highs as reports of U.S. government activity involving confiscated Silk Road coins unsettled investors.
The largest cryptocurrency by market cap has been trading within a range under the $100,000 mark in recent weeks, after failing to break through this psychological barrier during November’s rally. Despite this, it remains near its all-time highs of over $99,000.
As of 00:18 ET (05:18 GMT), Bitcoin was down 0.8%, trading at $95,928.8.
Meanwhile, major altcoins outperformed Bitcoin, buoyed by expectations of more favorable policies under President-elect Donald Trump. XRP was among the biggest gainers, surging to a six-year high amid speculation that the SEC may drop its prolonged lawsuit against Ripple, the token’s issuer.
Bitcoin Wavers as $1.9 Billion Silk Road Tokens Are Moved
Bitcoin faced additional pressure after data from Arkham Intelligence revealed that the U.S. government transferred nearly 20,000 coins, valued at about $1.9 billion, to Coinbase (NASDAQ:COIN). Such movements often precede token sales.
These coins, seized from the now-defunct Silk Road online marketplace, represent approximately 10% of the government’s total Bitcoin holdings, according to Arkham.
While the transfer to an exchange typically signals an impending sale, it’s not a certainty. Coinbase has an existing contract with the U.S. Marshals Service to manage custody and trading of digital assets on behalf of the Justice Department.
TD Analysts: Trump Unlikely to Establish Bitcoin Reserve
TD analysts dismissed the likelihood of a Bitcoin Strategic Reserve under President-elect Donald Trump, citing his steadfast commitment to maintaining the U.S. dollar as the world’s reserve currency. This stance, they argue, would hinder any efforts to use Bitcoin as a hedge against the greenback.
Bitcoin’s recent rally was fueled by optimism surrounding Trump’s victory, as he vowed to implement crypto-friendly policies and potentially create a Bitcoin reserve.
However, despite his cabinet’s pro-crypto leanings, skepticism has grown over the feasibility of such a reserve. Establishing it would require significant fiscal resources to acquire more Bitcoin, a prospect made unlikely by a Republican-controlled Congress focused on reducing government spending.
Crypto Market Today: Altcoins Outperform as XRP Surges
While Bitcoin struggled, broader cryptocurrency markets saw gains, with several altcoins outpacing the flagship digital asset.
- Ether (ETH): Dropped 1.1% to $3,653.11.
- XRP: Climbed 11.3% to $2.7395, reaching a six-year high. The rally propelled it to become the world’s third-largest cryptocurrency, fueled by speculation that new leadership at the SEC could lead to the dismissal of its long-standing lawsuit against Ripple.
- Cardano (ADA): Jumped 12%.
- Polygon (MATIC): Rallied nearly 18%.
- Solana (SOL): Edged down 0.3%.
- Dogecoin (DOGE): Lagged, losing 3.8%.
The altcoin rally reflected broader optimism in the market, even as Bitcoin faced headwinds.
