May 29 2024: Bitcoin’s price increased slightly on Wednesday but remained within a recent trading range as concerns over U.S. inflation and interest rates continued to make traders cautious about risk-driven assets like cryptocurrencies.
The world’s largest cryptocurrency saw some price relief after reports indicated that the crypto exchange Mt Gox had no immediate plans to sell its substantial Bitcoin holdings, despite preparing a plan to repay creditors.
Bitcoin rose 1.5% over the past 24 hours to $68,826.3 by 01:00 ET (05:00 GMT). The token has stayed within the $60,000 to $70,000 range observed over the past two months.
Mt Gox’s Bitcoin Movements Clarified
Bitcoin faced some turbulence when bankrupt crypto exchange Mt Gox moved about $9 billion worth of the token, sparking fears of an imminent sale to repay creditors. However, later reports clarified that the exchange had no immediate plans to sell the tokens, although preparations to repay obligations were underway.
Former Mt Gox CEO Mark Karpeles explained that the recent movement of Bitcoins was likely due to trustees organizing the tokens for eventual distribution, with no immediate sale planned. This eased some fears among traders, as a large-scale liquidation could exert significant selling pressure on Bitcoin.
Altcoins See Modest Gains Amid Rate Fears
Most major altcoins also saw slight increases on Wednesday. Ether, the second-largest token, rose 0.8% to $3,864.29, staying close to its two-month peak after the Securities and Exchange Commission made progress toward approving an exchange-traded fund that directly tracks the token. Similar spot products have also begun trading in UK markets.
Other altcoins edged higher despite ongoing concerns about prolonged high interest rates and persistent inflation. XRP rose 0.8%, SOL added 3.6%, SHIB surged nearly 17%, and DOGE increased by 2.6%.
The focus this week is on the PCE price index data, the Federal Reserve’s preferred inflation gauge, due on Friday. This data is expected to influence the central bank’s interest rate plans. A number of Fed officials have recently warned that rates will likely stay high for an extended period, a scenario that does not bode well for cryptocurrencies.
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