July 10 2024: Bitcoin’s price rose on Wednesday, recovering from recent losses as bargain hunters capitalized on the recent dip. Despite this, sentiment remained cautious due to increased supply concerns linked to Mt Gox and the German government.
Ether, the second-largest cryptocurrency, also saw gains, continuing its recent recovery as the market anticipated a key decision from the Securities and Exchange Commission regarding a spot exchange-traded fund.
Bitcoin climbed 2.8% over the past 24 hours, reaching $58,870.5 by 01:40 ET (05:40 GMT) and briefly crossing the $59,000 mark after hitting a four-month low.
Bitcoin Gains from Bargain Buying Amid Ongoing Supply Fears
The primary driver behind Bitcoin’s recent rise was bargain buying, as investors took advantage of the price drop. This trend was evident with increased capital inflows into crypto investment products, including Bitcoin ETFs.
However, overall sentiment towards cryptocurrency remained apprehensive. Uncertainty loomed over the number of tokens that the defunct crypto exchange Mt Gox would distribute as compensation for a 2014 hack. Earlier this year, Mt Gox mobilized about $9 billion worth of Bitcoin, a significant portion of the current supply. Such a large-scale sale could potentially lead to substantial losses in Bitcoin’s price.
Additionally, the German government was reportedly selling Bitcoin confiscated from a piracy website, with holdings estimated at around $2 billion. This steady offloading of Bitcoin in the open market added to the selling pressure.
Despite the recent weakness of the dollar providing some relief to Bitcoin, the greenback steadied this week following Federal Reserve Chair Jerome Powell’s testimony, which offered no clear indications of plans to cut interest rates. Attention is also on the upcoming consumer price index inflation data, due on Thursday.
Crypto Prices Today: Ether Gains on ETF Speculation, Altcoins Recover
Broader cryptocurrency prices mirrored Bitcoin’s recovery.
Ether rose 1.2% to $3,106.66, extending its recent gains as markets awaited the SEC’s decision on amended applications from issuers for a spot Ether ETF. The ETF could potentially be approved by mid-July, attracting institutional capital into the world’s second-largest cryptocurrency.
Other altcoins also showed recovery. Solana gained 1.9%, buoyed by the prospect of a spot ETF, while XRP and Cardano increased by 0.9% and 2.6%, respectively.
Among meme coins, SHIB rose 3.9%, while Dogecoin added 0.9%.
