June 26 2024: Bitcoin’s price remained relatively flat at $61,000 on Wednesday, struggling with significant losses from the previous week due to concerns over potential selling pressure from the defunct crypto exchange Mt. Gox.
The dollar’s strength negatively impacted broader cryptocurrency prices as traders favored the greenback ahead of crucial U.S. inflation data due this Friday. Additionally, a first-quarter economic growth report is also expected.
Bitcoin saw a slight increase of 0.9% over the past 24 hours, reaching $61,597.0 by 01:30 ET (05:30 GMT). Earlier this week, the world’s largest cryptocurrency had dropped to $59,000, reflecting a generally negative risk appetite.
Mt. Gox Liquidators Announce Bitcoin Sales Starting in July
Liquidators of the collapsed crypto exchange Mt. Gox, which fell victim to a hack in 2014, announced this week that they will start distributing the stolen tokens in the first week of July.
Earlier this year, the liquidators moved about $9 billion worth of Bitcoin from cold wallets, an action expected to precede a potential distribution. However, they did not specify the scale of the upcoming distributions in their recent announcement.
Clients receiving their reclaimed assets now are likely to do so at much higher prices, which might lead to significant sell-offs. This scenario could exert considerable selling pressure on Bitcoin.
Bitcoin Cash, also part of the Mt. Gox distribution, faced steep losses this week. The token was further pressured by reports indicating that German authorities had begun selling thousands of Bitcoin seized from a piracy website.
Broader sentiment towards cryptocurrencies was already fragile, with traders shifting to more stable assets like the dollar amid concerns over high U.S. interest rates.
Crypto investment products, particularly Bitcoin exchange-traded funds, have experienced two weeks of substantial outflows.
Altcoins Gain as Bitcoin Sentiment Deteriorates
Despite the negative sentiment surrounding Bitcoin, some altcoins saw gains this week as potential increased selling pressure on Bitcoin prompted flows into other crypto assets.
Ether, the world’s second-largest cryptocurrency, rose 0.2% to $3,382.25, while SOL and ADA gained 0.8% and 0.5%, respectively. XRP, however, lagged, falling by 1%.
Among meme tokens, SHIB increased by 1.5%, and DOGE rose by 2.1%.
