July 4 2024: Bitcoin’s price fell sharply to a two-month low on Thursday, breaking past a key support level as uncertainty over several points of selling pressure, chiefly the defunct exchange Mt. Gox, caused traders to remain averse to the token.
The world’s biggest cryptocurrency received little support from a weaker dollar, which fell amid increased bets on interest rate cuts by the Federal Reserve. Broader crypto prices also followed Bitcoin lower.
Bitcoin fell 3.2% in the past 24 hours to $59,046.0 by 23:37 ET (03:37 GMT). The token had fallen as far as $58,055.4.
Mt. Gox Dumping Fears Batter Bitcoin
Bitcoin was nursing steep losses over the past week as traders positioned for a potential mass sale event, stemming largely from the defunct crypto exchange Mt. Gox.
The liquidators of the exchange announced they would begin returning Bitcoin stolen during a 2014 hack to clients starting in early July. While the scale of the distribution remains unclear, traders speculate that given Bitcoin’s massive price appreciation in the past decade, most recipients of the token would be inclined to sell.
This scenario presents significant selling pressure on Bitcoin. Several major whales were seen mobilizing Bitcoin on exchanges for sale, while the token was also pressured by reported selling of confiscated tokens by the German government.
Fears of a mass sale have led traders to become largely averse to the world’s biggest cryptocurrency. This selling pressure spilled over into broader crypto markets, even as recent data showed some improvement in capital flows into crypto.
Crypto Prices Today: Altcoins Tumble, Rate Optimism Provides Little Support
Broader crypto prices also retreated on Thursday, nursing steep losses over the past week.
Ether, the world’s second-largest cryptocurrency, fell 3.5% to $3,242.79 as traders largely disregarded recent speculation over a spot Ether exchange-traded fund. Ether touched an over one-month low, having largely wiped out gains made in May on hype over a spot ETF.
XRP, SOL, and ADA slid between 4% to 9%, while among meme coins, SHIB and DOGE shed around 6% each.
Crypto prices found little support from the weaker dollar, which fell as weak labor market and business activity readings pushed up expectations of interest rate cuts by the Fed.
Hawkish signals from the minutes of the Fed’s June meeting somewhat tempered this optimism, while several Fed officials also sounded caution over interest rate cuts.
Focus now shifts to key nonfarm payrolls data due on Friday, which is set to offer more definitive cues on the labor market.
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