Bitcoin (BTC) headed toward the $66,000 mark early Tuesday, erasing last week's gains that reached the $70,000 mark.
Earlier in the morning, the cryptocurrency dropped to the $66,000 level, but then regained some of its losses. At the time of writing, Bitcoin is trading at $67,007, representing a 3.7% loss over the past 24 hours on trading volume of $39.5 million.
According to some crypto enthusiasts, these losses have occurred as market sentiment has deteriorated due to a large-scale movement of BTC from US government-linked portfolios.
The U.S. Marshals Service transferred $2 billion worth of Bitcoin into two new wallets, with the Arkham onchain movement tracking platform claiming that at least one of them was likely custodial, raising concerns about potential selling pressure among traders.
Other major cryptocurrencies also saw declines, mirroring the movement of the largest cryptocurrency. ADA fell 4.3 percent, DOGE and BNB each lost 3.1 percent and XRP declined 2 percent.
Despite these widespread losses, ETH showed relative resilience, falling just 0.7%.
Market analysts are closely watching the impact of Donald Trump’s growing influence over the cryptocurrency space, with speculation mounting that he may announce a strategic Bitcoin reserve ahead of the White House Cryptocurrency Summit on March 7.
The U.S. government’s decision to add Bitcoin and other cryptocurrencies to its strategic reserves has sparked debate, with MicroStrategy’s Michael Saylor weighing in on the matter.
Speculation is mounting over the U.S. government’s decision to integrate Bitcoin into its financial strategy, with some experts questioning its impact on the dollar.
Mt. Gox, the long-defunct crypto exchange, has once again moved a significant amount of Bitcoin, transferring 12,000 BTC amid a period of heightened market uncertainty.