down to $57k as recovery stalls; Mt Gox fears persist By Investing.com

3 min read

Investing.com– Bitcoin price fell on Thursday as a recent rebound was cut short by persistent concerns over increased token supplies, amid few signs that selling pressure from Mt Gox and the German government had eased. 

The world’s biggest cryptocurrency was nursing a 15% slump over the past month, and remained on the cusp of a bear market as fears of increased token supplies battered markets.

fell 2.7% in the past 24 hours to $57,772.4 by 01:33 ET (05:33 GMT). The token saw limited relief from some bargain buying this week.

Mt Gox, German sales and miner capitulation weigh on Bitcoin 

Defunct crypto exchange Mt Gox remained a key point of contention for Bitcoin, after the trustees of the exchange  said they had begun returning tokens to clients affected by a 2014 hack.

It was immediately unclear just how much this distribution will entail. But wallets linked to the exchange were seen mobilizing about $9 billion worth of tokens earlier this year. 

Additionally, the German government was also seen offloading Bitcoin confiscated from a piracy website, and could potentially hold at least $2 billion worth of tokens. 

Sharp declines in Bitcoin’s price brewed concerns that major Bitcoin miners could begin selling some of their holdings to break even, especially after Bitcoin’s halving reduced miner rewards earlier this year. 

Bargain buying helps limit Bitcoin losses 

Bitcoin still remained above four-month lows hit earlier in July, as recent price declines attracted a slew of bargain buying into the token.

Capital inflows into Bitcoin investment products, particularly exchange-traded funds, grew over the past week, helping inspire some confidence in the currency. This also kept Bitcoin’s price off recent lows. 

Sentiment towards crypto ETFs is likely to improve in the coming weeks, especially as the Securities and Exchange Commission prepares to make a key decision on spot ETFs for world no. 2 token Ether. 

Crypto price today: altcoins mixed, CPI data awaited 

Among broader cryptocurrency prices, major altcoins were a mixed bag, but were also nursing steep losses in recent weeks as selling in Bitcoin spilled over.

fell 0.1% to $3,099.20, while added 1%. rose 2.5%, while slid over 2%. Among meme tokens, fell 1.1%.

Improving optimism over U.S. interest rate cuts dented the , but still provided little support to crypto prices. Fed Chair Jerome Powell flagged more progress in bringing down inflation, but warned that the central bank still needed more confidence to cut interest rates.

Focus was now squarely on key data, due later on Thursday, for more cues on rates. 

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