Title: “Price Drops to $66.5K as U.S. Sale Fears Counter Trump Influence”

Bitcoin’s price declined on Tuesday, reversing much of the gains seen over the weekend. This dip was primarily attributed to reports indicating that the U.S. government had mobilized $2 billion worth of seized Bitcoin, dampening the optimism generated by favorable regulatory comments from former President Donald Trump.

The largest cryptocurrency had surged to nearly $70,000 on Monday after Trump pledged to promote a friendlier regulatory environment for crypto during his speech at the Bitcoin Conference. However, it fell sharply, decreasing by 4.8% over the past 24 hours to $66,507.40 by 08:25 ET.

### U.S. Government Transfers $2 Billion in Bitcoin

The downward trend was worsened by news that the U.S. government transferred $2 billion worth of seized Bitcoin on Monday, raising concerns about potential selling pressure. A government-associated wallet was observed transferring 29,800 tokens to two different addresses, likely indicating a move to a custody service. Historically, such transfers often precede actual sales, similar to events involving the Mt Gox exchange earlier in the month.

Concerns about selling pressure related to distributions from Mt Gox had previously driven Bitcoin’s price down to around $54,000, although it had since rebounded and was poised for monthly gains in July. The U.S. government is estimated to control approximately $12 billion worth of confiscated Bitcoin, primarily obtained from the dismantled Silk Road marketplace. Trump asserted that, if elected, the government would not liquidate its Bitcoin holdings, but he did not commit to establishing a strategic reserve of the cryptocurrency. Nonetheless, he stated his intention to ease regulations for the crypto industry compared to the current Democratic frontrunner.

### Broader Cryptocurrency Market Trends

The overall cryptocurrency market followed Bitcoin’s downward trajectory on Tuesday. The second-largest cryptocurrency experienced a 1.4% decline to $3,335.05, showing little support from the recent launch of spot exchange-traded funds. Other notable movers included an approximate 4% rise in one token while others experienced declines of 3.3% and 6%, respectively. Among meme coins, one token fell by 3.5%, and another lost 2.5%.

A broader risk-off sentiment prevailed, with traders remaining cautious ahead of the upcoming Federal Reserve meeting. Although the central bank is anticipated to maintain current interest rates, market participants are keenly observing whether any signals about future rate cuts will be issued.

### SEC May Drop Charges Against Certain Tokens

In related news, recent court filings suggest that the U.S. Securities and Exchange Commission (SEC) may reconsider its charges against certain third-party tokens, including SOL and MATIC, which have been part of its case against a major cryptocurrency exchange.

The SEC has indicated its intention to amend the complaint, which could negate the need for the court to rule on the sufficiency of allegations related to those tokens at this time. This update follows a July hearing where ambiguities regarding the SEC’s case led to interpretations that third-party tokens might be excluded from the allegations.

The judge overseeing the case was expected to review the role of these third-party tokens. However, it now seems the SEC may alter its stance and potentially dismiss these claims. Consequently, the defense has requested to review the amended complaint before proceeding with discovery in the case, arguing that it would be premature to engage in the discovery process without a clear understanding of the SEC’s revised allegations.