July 18 2024: Bitcoin’s price dropped on Thursday, reversing its recent gains as lingering concerns over token distributions from the defunct crypto exchange Mt Gox remained prominent.
After rebounding from near four-month lows earlier this week, Bitcoin’s price was affected by the ongoing fears surrounding Mt Gox, which overshadowed the initial optimism generated by the potential for a friendlier regulatory environment under a prospective Donald Trump presidency.
Bitcoin fell 1.3% in the past 24 hours to $64,818.4 by 01:52 ET (05:52 GMT).
Mt Gox Jitters Persist After $2.8 Billion Mobilization
Persistent concerns regarding Mt Gox were a key factor in Bitcoin’s recent price movements. Wallets associated with the exchange were observed mobilizing $2.8 billion worth of tokens earlier this week. This activity reignited worries about the exchange’s plan to begin returning stolen tokens from a 2014 hack back to creditors in July. The exact amount of Bitcoin involved in the overall distribution remains unclear.
The anticipated sharp increase in Bitcoin supply raised fears of heightened selling pressure, as recipients of the tokens might opt to sell after Bitcoin’s substantial appreciation over the past decade. These concerns contributed to Bitcoin’s sharp declines in early July, bringing it close to levels that could trigger miner capitulation.
Bitcoin Rebound and Trump Speculation
Despite the Mt Gox fears, Bitcoin saw a sharp rebound this week, driven by increased speculation over a potential second Trump presidency. The former president has expressed support for cryptocurrency in his recent campaign efforts and is scheduled to speak at the Bitcoin Conference in Nashville later in July. Trump’s popularity surged following a failed assassination attempt last week, further fueling the optimism among crypto traders.
Additionally, Bitcoin benefited from the recent weakness in the dollar, amid growing expectations that the Federal Reserve will begin cutting interest rates from September.
Crypto Prices Today: Altcoins Retreat as Rebound Rally Cools
The broader cryptocurrency market also saw major altcoins retreat from recent gains as the rebound rally lost momentum.
Ether, the world’s second-largest cryptocurrency, fell 2.2% to $3,423.02. Despite the decline, Ether remained relatively buoyant due to the prospect of spot exchange-traded funds being approved for U.S. markets.
XRP slid 3.3%, reversing gains spurred by rumors of a settlement between Ripple and the Securities and Exchange Commission. Other major altcoins such as ADA and SOL traded in a flat-to-low range.
Among meme tokens, SHIB fell 3.8%, while DOGE shed 2.7%, reflecting the broader cooling of the cryptocurrency market following the initial rebound.
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