July 11 2024: Bitcoin’s price fell on Thursday, cutting short a recent rebound due to persistent concerns over increased token supplies. There were few signs that selling pressure from Mt Gox and the German government had eased.
The world’s largest cryptocurrency is down 15% over the past month and remains on the brink of a bear market. Fears of increased token supplies have significantly impacted the market.
Bitcoin fell 2.7% in the past 24 hours to $57,772.4 by 01:33 ET (05:33 GMT), with only limited relief from some bargain buying this week.
Mt Gox, German Sales, and Miner Capitulation Weigh on Bitcoin
Mt Gox, the defunct crypto exchange, remains a significant concern for Bitcoin. The trustees of the exchange have begun returning tokens to clients affected by a 2014 hack. The exact amount of this distribution is unclear, but wallets linked to Mt Gox were seen mobilizing about $9 billion worth of tokens earlier this year.
Additionally, the German government has been offloading Bitcoin confiscated from a piracy website, potentially holding at least $2 billion worth of tokens.
Sharp declines in Bitcoin’s price have raised concerns that major Bitcoin miners might start 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
Despite recent declines, Bitcoin remains above the four-month lows hit earlier in July. Recent price drops have attracted bargain buyers into the token. Capital inflows into Bitcoin investment products, particularly exchange-traded funds (ETFs), have grown over the past week, inspiring some confidence in the currency and helping to keep 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 (SEC) prepares to make a key decision on spot ETFs for Ether, the world’s second-largest cryptocurrency.
Crypto Prices Today: Altcoins Mixed, CPI Data Awaited
Among broader cryptocurrency prices, major altcoins showed mixed performance but have also suffered steep losses in recent weeks due to the spillover from Bitcoin’s decline.
Ether fell 0.1% to $3,099.20, while XRP added 1%. ADA rose 2.5%, while SOL slid over 2%. Among meme tokens, DOGE fell 1.1%.
Improved optimism over U.S. interest rate cuts has weakened the dollar but has provided little support to crypto prices. Fed Chair Jerome Powell flagged progress in reducing inflation but warned that the central bank still needed more confidence to cut interest rates.
Focus is now on key consumer price index (CPI) data, due later on Thursday, for further cues on interest rates.
