Bitcoin
fell to $60K amid Mt Gox dump fears By Investing.com
Investing.com– Bitcoin’s price fell on Wednesday, extending losses seen earlier in the week, as traders remained largely averse to the token amid concerns that distributions from defunct exchange Mt Gox will trigger mass selloffs of the token.
Sentiment towards broader cryptocurrency markets also remained gloomy amid uncertainty over US interest rates, with a recent drop in the dollar doing little to arrest weakness in the sector.
fell 3.3% over the past 24 hours to $60,976.6 as of 01:14 ET (05:14 GMT). The world’s largest cryptocurrency had been suffering steep losses through June and has remained firmly within a trading range established since March.
Bitcoin Sees Little Relief as Mt Gox Fears Reign
Traders have been on edge ahead of Mt Gox’s distributions. The exchange’s liquidators have signaled that they will begin returning Bitcoin stolen during a 2014 hack to customers in early July.
The exchange was seen mobilizing around $9 billion worth of Bitcoin earlier this year, though it remains unclear how much the planned distributions will involve.
Traders have speculated that the token recipients would be largely inclined to sell them, given that Bitcoin has seen massive price gains over the past decade. Such a scenario presents extended selling pressure on Bitcoin.
Speculation about dumping activities by other entities has also weighed on Bitcoin. The German government was seen offloading Bitcoin recovered from a piracy site, while some whales were also seen mobilizing Bitcoin this week.
But even before Mt Gox fears began to affect Bitcoin prices, sentiment towards the cryptocurrency was waning as the token remained range-bound for more than three months.
Capital flow data showed that trading volumes for cryptocurrency exchange-traded funds, particularly Bitcoin, have fallen sharply in recent months.
Cryptocurrency Price Today: Rate Jitters Keep Altcoins Subdued
Broader cryptocurrency prices retreated, receiving little support from the dollar’s decline overnight.
The world’s second-largest token fell 2.8% to $3,360.84 as sentiment towards the token remained weak even as reports suggested a spot Ether ETF could be approved this week.
and moved in a narrow range, just like meme tokens and .
Cryptocurrencies saw little gains even as Federal Reserve Chairman Jerome Powell signaled progress in reducing inflation, which weighed on the dollar.
But Powell warned that the Fed still needed more confidence to start cutting interest rates.
His comments came ahead of more important hints about U.S. interest rates. The Fed’s June meeting is scheduled for Wednesday, when several Fed officials are also expected to speak.
Other than the Fed, data is due out on Friday.