The price of bitcoin fell on Wednesday, adding to losses seen earlier in the week as traders continued their aversion to the token on concerns that the defunct Mt Gox exchange will generate a massive sell-off in the token.
Sentiment towards the broader cryptocurrency markets continues to be gloomy amid an uncertain outlook for U.S. interest rates, with a recent drop in the dollar doing little to deter weakness in the sector.
Bitcoin lost nearly 4% in the last 24 hours, around $60,339.10. The world’s most important cryptocurrency has suffered notable losses during the month of June and has held within a trading range since March.
Little relief for Bitcoin on Mt Gox fears
Traders were very nervous in anticipation of Mt Gox distributions. The exchange’s liquidators indicated that they will begin returning Bitcoin stolen during a 2014 hack to customers in early July.
The exchange mobilized about $9 billion in Bitcoin earlier this year, but it is not yet clear how much the planned distributions will amount to.
Traders assume that token recipients will mostly opt to sell, given that Bitcoin saw huge price increases over the past decade. Such a situation implies widespread selling pressure on Bitcoin.
The possibility of dumping activities by other entities also weighed on Bitcoin. The German government was observed dumping Bitcoin ransomed from a hacking website, while some whales were also observed mobilizing Bitcoin this week.
But even before fears over Mt Gox affected Bitcoin prices, the mood towards cryptocurrencies was cooling as the token remained range-bound for more than three months.
Information on capital flows revealed that trading volumes of cryptocurrency exchange-traded funds, particularly Bitcoin, slowed considerably in recent months.
Cryptocurrency Prices Today: Rate Jitters Weigh on Altcoins
Major cryptocurrency prices retreated, with little support from the falling dollar overnight.
Ether, the world’s No. 2 token, retreated 4.5% to $3,296.01, with a weakening mood toward the token, even as some reports hint that a spot Ether ETF could be approved this week.
XRP, SOL and ADA were down between 1% and 4.5%, while meme tokens DOGE and SHIB each retreated more than 4%.
Cryptocurrencies posted few gains despite Federal Reserve Chairman Jerome Powell signaling progress toward lower inflation, which weighed on the dollar.
However, Powell warned that the Fed still needs more confidence to start cutting interest rates.
His remarks come ahead of more key U.S. interest rate data. On Wednesday, the minutes of the Fed’s June meeting will be released, at which several officials will also speak.
In addition, non-farm payrolls will be released on Friday.
