Investing.com– Bitcoin fell on Tuesday, largely reversing a weekend rebound, as reports that the U.S. government had mobilized $2 billion worth of the tokens largely offset optimism sparked by Donald Trump’s positive comments on regulation.

The world’s largest cryptocurrency rose to $70,000 on Monday after Republican presidential candidate Trump promised lighter regulations during his speech at the Bitcoin Conference last weekend.

However, the rate quickly reversed, falling 4.7% in the past 24 hours to 66,422.1 at 01:37 ET (05:37 GMT).

US government expects $2 billion in Bitcoins to be transferred

Bitcoin’s losses deepened following media reports that the U.S. government on Monday transferred $2 billion worth of confiscated bitcoin, raising fresh concerns about growing selling pressure on the token.

The government-linked wallet was spotted transferring 29,800 tokens to two different addresses, potentially to an escrow service. However, token movement typically precedes sales, as was seen with the Mt Gox exchange in early July.

Fears of selling pressure stemming from the Mt Gox distribution led to the bitcoin price falling to $54,000, however the token has since rebounded and was heading towards a monthly gain in July.

The U.S. government is reported to be in possession of approximately $12 billion worth of confiscated tokens, most of which comes from the now-defunct Silk Road marketplace.

Trump has promised that the government would not sell any of its holdings if he were elected president. But he has also stopped compact of announcing plans to create a strategic Bitcoin reserve.

However, the former president said he would ease regulatory conditions on cryptocurrencies and support the sector better than Democratic frontrunner Kamala Harris.

Cryptocurrency Price Today: Altcoins Track Bitcoin Losses, Fed Worries Also in Play

Cryptocurrency prices were trending lower Tuesday, as were bitcoin prices. Caution ahead of the Federal Reserve meeting also put pressure on prices.

The world’s second-most valuable token fell 1.7% to $3,311.76, failing to gain much support from the recent launch of ETFs.

and fell by 1.8%-6.1%, while among meme tokens the decline was 3.8% and the loss was 2.8%.

Cryptocurrencies found themselves in a broader risk-averse sentiment zone as caution remained in place heading into the close of trading on Wednesday.

While the central bank is widely expected to keep interest rates unchanged, investors will be watching to see if the bank signals any plans to cut rates.