Bitcoin price fell on Wednesday as Mt Gox appeared to have mobilized about $2 billion worth of tokens, raising concerns over more distributions from the defunct crypto exchange.
Broader risk sentiment also cooled as Wall Street snapped an eight-day winning streak, with traders now seeking more positive cues to extend a mid-August rebound rally.
Bitcoin fell 2.8% to $59,397.1 by 01:38 ET (05:38 GMT) after failing to hold above the $60,000 support level.
Mt Gox seen moving $2 bln tokens, distribution fears persist
A wallet associated with Mt Gox was seen mobilizing about $2 billion worth of Bitcoin, potentially preparing for more token distributions.
The defunct exchange began returning tokens stolen during a 2014 hack back to clients in early-July, and had initially triggered steep losses in Bitcoin’s price by sparking fears of increased supply and a mass sale event.
But while Bitcoin did recover most of the initial losses, traders still remained on edge over any more potential distributions by the exchange. It is also unclear just how much Bitcoin Mt Gox holds, although the exchange was seen moving some $9 billion worth of tokens earlier this year.
Bitcoin struggles to break above $60k, more positive cues awaited
Bitcoin recovered a bulk of losses marked in early-August as fears of a U.S. recession dwindled.
But the token struggled to break above the $60,000 level consistently, amid few positive signals for crypto markets.
While broader risk sentiment was buoyed by expectations of interest rate cuts and a soft landing for the U.S. economy, Bitcoin mostly lagged a stronger recovery in stocks.
This trend also came amid dwindling capital inflows into crypto investment products. Trading volumes in the products were also at a fraction of highs seen during the launch of spot Bitcoin exchange-traded funds earlier this year, data showed this week.
Crypto price today: altcoins drift lower with Fed cues on tap
Broader altcoin prices drifted lower on Wednesday, tracking losses in Bitcoin. World no.2 token Ether fell 3.4% to $2,594.51.
SOL and XRP shed between 2% and 3%, while MATIC and ADA rose 5.3% and 3.3%, respectively.
Among meme tokens, DOGE fell 1.4%.
Markets are focused squarely on more cues on U.S. interest rate cuts this week, with the minutes of the Federal Reserve’s late-July meeting due later on Wednesday. The Fed had struck a dovish chord during the meeting.
Fed Chair Jerome Powell is set to speak at the Jackson Hole Symposium on Friday, and is set to potentially offer up more cues on interest rates, amid growing expectations that the central bank will cut rates in September.
