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Slips to $57k as Mt Gox jitters rattle cryptocurrencies By Investing.com
Investing.com — Bitcoin price fell slightly on Monday as lingering concerns about distributions from the now-defunct cryptocurrency exchange Mt Gox also weighed on sentiment toward cryptocurrency markets overall.
However, the world’s largest cryptocurrency found some support around the $57,000 level after falling to more than four-month lows on Monday morning. It fell 0.8% over the past 24 hours to $57,072.0 by 8:09 a.m. ET.
The token and the broader cryptocurrency sector have received little support from a weaker dollar, with reports suggesting that even major Bitcoin wallet holders have begun to mobilize their wallets for potential selling.
Bitcoin Hammered as Distribution Begins on Mt Gox
Trustees of the now-defunct cryptocurrency exchange Mt Gox said they have begun distributing tokens to customers affected by the 2014 cyber attack.
While the trustees have not yet disclosed the value of the distributions, wallets associated with the exchange moved about $9 billion in Bitcoin earlier this year.
Traders have dumped Bitcoin out of fear that token recipients will be widely encouraged to sell their holdings, given the massive price jump of Bitcoin over the past decade. Such a scenario presents enormous selling pressure on the token.
Several “whale” Bitcoin wallets have been seen going online for potential sales of their holdings, while inflows into cryptocurrency investment products have also been seen largely drying up in recent weeks.
Cryptocurrency Price Today: Altcoins Mixed, Rate Signals In Focus
Among the broader cryptocurrency markets, major altcoins have seen mixed performances despite Bitcoin’s decline.
The world’s No. 2 token rose 1% to $3,043.14. Previously, the token had fallen below $3,000 for the first time since May.
and increased by 2.5% and 0.7% respectively, while they decreased by 0.4%. Among meme tokens, they decreased by 1.8%, while they increased by 0.8%.
The selling pressure on Bitcoin has spilled over into major altcoins, as the token typically serves as a bellwether for the cryptocurrency industry.
As a result, cryptocurrency prices have largely ignored the recent weakness in , amid growing optimism about interest rate cuts from the Federal Reserve. This trend has seen Wall Street hit record highs.
A is set to offer more interest rate insights this week. Key U.S. inflation data is also coming.
Digital Asset Hedge Funds See First Inflows in 4 Weeks
Digital asset investment products saw net inflows of $441 million last week, breaking a three-week streak of net outflows, CoinShares said in a new report. The last time these products saw net inflows was the week ended June 7, when investors added more than $2 billion.
Bitcoin accounted for $398 million of the inflows. CoinShares noted that it is unusual for BTC to account for only 90% of total inflows. Among altcoins, Solana stood out, with SOL-related products attracting $16 million.
CoinShares attributed the inflows to recent price weakness, caused by the defunct cryptocurrency exchange Mt. Gox preparing to repay creditors and German government law enforcement moving large amounts of bitcoin to exchanges.
According to CoinShares, investors likely saw this as a buying opportunity; however, the positive sentiment did not extend to blockchain stocks, which saw $8 million in outflows, bringing their year-to-date total to $556 million.