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Slips to $60k on Mt Gox Dump Fears By Investing.com
Investing.com — Bitcoin price fell on Wednesday, extending losses seen earlier in the week, as traders remained largely averse to the token amid fears that distributions from the defunct Mt Gox exchange could trigger mass sell-offs of the token.
Sentiment towards broader cryptocurrency markets has also remained gloomy, due to uncertainty over US interest rates, with a recent drop in the dollar failing to stem the weakness in the sector.
fell 4% over the past 24 hours to $60,339.1 as of 08:20 ET (12:20 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 were largely on edge in anticipation of Mt Gox distributions. Liquidators at the exchange have signaled they will begin returning bitcoin stolen in a 2014 hack to customers by early July.
Earlier this year, the exchange mobilized around $9 billion in Bitcoin, though it is not yet clear how much the planned distributions will be.
Traders have speculated that the recipients of the tokens would be widely inclined to sell them, as Bitcoin has seen huge price gains over the past decade. Such a scenario presents widespread selling pressure on Bitcoin.
Speculation about dumping activities by other entities has also weighed on Bitcoin. The German government was seen dumping Bitcoin recovered from a piracy website, while some whales were also seen mobilizing Bitcoin this week.
But even before the Mt. Gox scares began to hit Bitcoin prices hard, sentiment toward cryptocurrencies had cooled significantly, as the token had been range-bound for more than three months.
Capital flow data has shown that trading volumes of exchange-traded funds trading in cryptocurrencies, particularly Bitcoin, have fallen sharply in recent months.
Cryptocurrency Price Today: Rate Nervousness Weighs on Altcoins
Cryptocurrency prices in general fell, supported only marginally by the overnight decline of the dollar.
The world’s No. 2 token fell 4.5% to $3,296.01, with sentiment towards the token remaining weak, although reports suggest a spot Ether ETF could be approved later this week.
and dropped between 1% and 4.5%, while meme tokens and lost more than 4% each.
Cryptocurrencies posted modest gains despite Federal Reserve Chairman Jerome Powell signaling progress in reducing inflation, which has weighed on the dollar.
But Powell warned that the Fed still needs more confidence to start cutting interest rates.
His comments preceded other key signals on U.S. interest rates. The Fed’s June meeting conclusions are due Wednesday, with several Fed officials set to speak.
In addition to the Fed, data is due on Friday.
Bitcoin Could Hit $100,000 by U.S. Election Day, Says Standard Chartered (OTC:)
According to analysts at Standard Chartered, the price of Bitcoin could hit a new all-time high in August, before rising to $100,000 by the time of the U.S. presidential election in November.
In a note on Tuesday, analysts noted that “Bitcoin is likely to hit a new all-time high in August, followed by $100,000 by U.S. Election Day.”
The bank’s forecast hinges on Joe Biden remaining in the presidential race, a scenario perceived by the market as favorable to Donald Trump’s victory. Analysts consider Trump “bitcoin-positive” and have highlighted a positive correlation between Trump’s election odds and the price of bitcoin.
“The logic here is that both regulation and mining would be viewed more favorably under Trump,” they wrote.
Standard Chartered also posited a “less likely” scenario, in which Biden drops out of the presidential race in late July, which could lead to bitcoin prices dropping to $50,000-$55,000.