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Steady at $67.7K on Rate Concerns; MT Gox Risk Eases By Investing.com
Investing.com: The price was unchanged on Wednesday, holding firmly within a recent trading range, as caution over inflation and interest rates in the United States has left traders largely averse to risky assets such as cryptocurrencies.
Earlier, the world’s largest cryptocurrency saw a slight rise in prices after media reports suggested that cryptocurrency exchange Mt Gox had made it clear that it had no immediate plans to sell its huge Bitcoin reserves, although it was preparing a plan to repay creditors.
Bitcoin has remained almost unchanged over the past 24 hours at $67,709.6 as of 10:32 AM ET (14:32 GMT). The token has remained squarely within the $60,000 to $70,000 range observed over the past two months.
Mt Gox Appears to Mobilize Bitcoin Holdings, But No Sale Occurs
Bitcoin was spooked by the failure of cryptocurrency exchange Mt Gox which moved around $9 billion worth of tokens this week, sparking speculation that the exchange was planning to offload the token to pay off its creditors and account holders.
But later reports said the exchange had no immediate plans to offload any tokens, though it was still preparing to repay its obligations.
Former Mt Gox CEO Mark Karpeles said the bitcoins transferred were likely those of trustees transferring tokens in preparation for an eventual distribution and that no imminent sale was planned.
Mt Gox has been a key point of contention for Bitcoin traders, as the now-defunct exchange has a huge pool of tokens that it will likely liquidate to repay creditors. Such a liquidation could put massive immediate selling pressure on the world’s largest cryptocurrency.
Cryptocurrency Price Today: Altcoins Slide as Rate Fears Weigh on Sentiment
Most major altcoins fell on Wednesday, with the world’s No. 2 token Ether down 2.3% at $3,771.55. The token remained near two-month highs, retaining much of its recent gains after the Securities and Exchange Commission marked some progress toward approving an exchange-traded fund (ETF) that directly tracks the token.
Similar spot products have also started to be marketed on the British market.
Other altcoins also went into the red due to lingering concerns over high long-term interest rates and sticky inflation.
increased by 0.4%, while the SOL fell by 1%. Meme tokens fared better, with SHIB rising 6%, while DOGE gained 1.8%.
This week, the focus has been solely on the data, which is the Federal Reserve’s preferred gauge of inflation. The reading is due Friday and will likely factor in the central bank’s interest rate plans.
The data comes as a number of Fed officials have warned that rates will remain elevated for longer, a scenario that does not bode well for cryptocurrencies.
Blackrock ETF (NYSE:) Unseats Grayscale’s GBTC, Becomes Largest Spot Bitcoin ETF
BlackRock’s spot bitcoin ETF is now the largest fund of its kind, surpassing Grayscale’s GBTC after a $102 million inflow on Tuesday.
BlackRock’s IBIT holds nearly $20 billion in bitcoin as of Wednesday morning, while Grayscale’s GBTC holds $19.7 billion after seeing $105 million in outflows on Tuesday. Since its launch in January, IBIT has attracted $16.5 billion in investments, while investors have pulled $17 billion out of Grayscale’s fund.
On Tuesday, BlackRock added the bitcoin ETF to its income and bond-focused funds. The firm’s Strategic Income Opportunities Fund (BSIIX) now holds more than $3.5 million in IBIT, while its Strategic Global Bond Fund (MAWIX) holds $485,000.
The increased buying activity for IBIT is part of an uptrend for bitcoin and the broader cryptocurrency market. This momentum has been fueled in part by the approval of the listing of ether ETFs and renewed support for cryptocurrencies from U.S. political parties.