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hovers around $60,000 amid Mt Gox fears; Ether ETF Euphoria Tempered By Investing.com
Investing.com– The price of Bitcoin fell Thursday, finding little relief from last week’s big rout as fears of a mass sell-off event stemming from defunct exchange Mt. Gox kept traders averse to the token.
Markets received little support from a Reuters report that the Securities and Exchange Commission could approve exchange-traded funds tied to the spot price of Ether as early as next week.
Broader sentiment towards cryptocurrencies has also been stifled by fears of an upcoming US inflation reading that is likely to influence the outlook for interest rates. This notion has also kept traders heavily tilted towards the dollar.
fell 1.1% over the past 24 hours to $60,918.7 as of 01:28 ET (0528 GMT).
Bitcoin price hit by Mt Gox nervousness, strong dollar
Liquidators of the defunct cryptocurrency exchange Mt Gox said they planned to begin stealing crypto assets during a 2014 hack as early as early July. The distributions will primarily consist of large amounts of Bitcoin and .
But because the Bitcoin returned to customers will be worth substantially more than when it was stolen, traders expect that recipients of the assets will be more likely to liquidate their holdings, putting massive selling pressure on Bitcoin.
Earlier this year, Mt Gox liquidators were seen mobilizing about $9 billion worth of Bitcoin. But their token holdings are much more than that.
In addition to the Mt Gox sell-off, the anticipation of data from the PCE price index – which is the Federal Reserve’s preferred inflation indicator – also kept investors on their toes.
The strength of the cryptocurrency market, amid lingering fears of a rise in long-term U.S. interest rates, has had a key bearing on cryptocurrency prices in recent sessions.
Crypto Price Today: Ether Unenthusiastic About ETF Report
Among broader cryptocurrency prices, altcoins also fell as traders remained biased towards the dollar.
The world’s No. 2 token fell 0.4% to $3,374.23, receiving little support from a Reuters report that the SEC could approve a spot Ether ETF as early as next week.
Optimism around a spot Ether ETF saw the token rally sharply throughout May. But it was seen giving up much of those gains over the past two weeks, as traders wondered how much price upside a spot ETF could provide.
The approval of a spot Bitcoin ETF earlier this year saw the token briefly rise to record highs. But Bitcoin has since remained in a tight trading range and has struggled to deliver significant returns in the short term.
Enthusiasm for Bitcoin ETFs has also been seen waning in recent weeks, as cryptocurrency investment products have seen two weeks of heavy outflows.
Other altcoins also fell on Thursday. , and it fell between 0.5% and 2.7%.
Among meme tokens, it fell 3.4%, while it lost 3.2%.