July 19 2024: Bitcoin prices fell slightly on Friday as a recent rebound in the crypto market lost momentum, with attention remaining on the distributions from the defunct exchange Mt Gox and the evolving U.S. regulatory landscape.
Rebound and Regulatory Speculation
Bitcoin, the world’s largest cryptocurrency, experienced a strong rebound this week driven by speculation that a Donald Trump presidency could lead to a more favorable regulatory environment for crypto. Trump has emphasized friendlier crypto regulations as part of his reelection campaign, which has buoyed market sentiment.
However, concerns about potential selling pressure from Mt Gox distributions have tempered gains. The defunct exchange has started mobilizing billions of dollars in Bitcoin to return them to creditors following a 2014 hack. This move has sparked fears that an influx of Bitcoin into the market could drive prices down.
As of 02:03 ET (06:03 GMT), Bitcoin fell 0.9% to $64,166.3 but remained up 8.5% over the past week.
Market Reactions to Trump Speculation
Bitcoin saw a significant rebound from its four-month lows earlier this week after Trump gained a boost in popularity following a failed assassination attempt. Formally nominated as the Republican presidential candidate, Trump has maintained a pro-crypto stance, advocating for the future of crypto to be built in the U.S. His campaign also accepts donations in crypto.
Trump is scheduled to speak at the Bitcoin Conference in Nashville later this month, where speculation suggests he could outline plans to declare Bitcoin a “strategic reserve asset,” although there is no credible basis for this speculation.
Mt Gox Concerns
Despite the positive sentiment surrounding Trump, concerns about Mt Gox distributions continue to weigh on Bitcoin. Wallets linked to the exchange were seen mobilizing nearly $3 billion in tokens earlier this week. The prospect of these distributions significantly increasing Bitcoin supplies has led to fears of substantial selling pressure.
Traders speculate that given Bitcoin’s substantial gains over the past decade, recipients of these tokens might be inclined to sell, potentially driving down prices further. The exact scale of Mt Gox’s distribution remains uncertain.
Altcoins and ETF Speculation
In broader crypto markets, major altcoins also retreated as the recent rebound cooled. Losses were mitigated by speculation over potential spot exchange-traded fund (ETF) launches in the U.S.
Ether fell 0.2% to $3,444.58 amid reports that the Securities and Exchange Commission (SEC) could approve a spot Ether ETF as soon as next week. SOL rose 3.8% following reports of a spot SOL ETF being in the works.
Other altcoins such as ADA and XRP fell 2.3% and 4.7%, respectively. Among meme tokens, DOGE fell 1.1% while SHIB slid 6.2%.
