Bitcoin price drops to $59 thousand due to large-scale movement of tokens to Mt Gox exchanges
Kyiv • UNN
The price of bitcoin dropped to $59,397 due to the $2 billion move of Mt Gox tokens. This raised concerns about new distributions from the defunct exchange and affected investor sentiment.
The price of bitcoin fell on Wednesday as Mt Gox appeared to have mobilized tokens worth about $2 billion, raising concerns about new distributions from the defunct crypto exchange. UNN writes about this with reference to Investing.
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Bitcoin fell by 2.8% to $59,397.1, failing to stay above the support level of $60,000. A wallet linked to Mt Gox reportedly moved about $2 billion worth of bitcoins, raising concerns about a possible new token distribution.
In July, the previously inactive Mt. Gox exchange began returning tokens stolen during a 2014 hacker attack to customers. This caused a significant decline in the price of bitcoin due to fears of increased supply and a massive sell-off. Although bitcoin has recovered most of its initial losses, traders still remain wary of potential new token distributions by the exchange. It is not yet known how much bitcoin is still stored at Mt Gox, although the exchange moved $9 billion worth of tokens earlier this year.
Bitcoin is trying to break through the $60,000 mark, waiting for more positive signals. Despite the fact that fears of a recession in the United States have eased, bitcoin remains under pressure and cannot confidently gain a foothold above this level, although the overall mood in the markets has improved due to expectations of lower interest rates and a soft landing in the US economy. Despite this, bitcoin is not performing as well as stocks and is lagging far behind in its recovery.
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This trend coincided with a decrease in capital inflows into crypto investment products. According to the latest data, trading volumes in these products also remain lower compared to the highs reached during the launch of spot bitcoin exchange-traded funds at the beginning of the year.
Altcoins also declined on Wednesday, mirroring bitcoin's losses. Ether, the second largest cryptocurrency, fell 3.4% to $2,594.51. SOL and XRP lost 2-3% in value, while MATIC and ADA gained 5.3% and 3.3%, respectively. Among the meme tokens, DOGE lost 1.4%.
Markets this week are focused on additional signals of interest rate cuts in the US, awaiting the publication of the minutes of the Federal Reserve meeting held in late July. On Friday, Fed Chairman Jerome Powell will speak at a symposium in Jackson Hole, where he is likely to provide more information on future interest rates, amid growing expectations for a possible rate cut in September.
Recall
The day before, bitcoin rose to $59,305 after a short-term drop. Investors invested $155 million in ethereum-related products, while only $13 million was invested in bitcoin. The market is awaiting US inflation data.
