Bitcoin Price Tracks Broader Risk-On Market Higher, But Mt. Gox Token Distribution Speculation Limits Gains

Bitcoin rose 2.4% to 60,751.8 by 00:50 ET (04:50 GMT). The token drifted in a tight trading range for most of this week

RISING FROM THE DEPTHS: Bitcoin price edged higher on Thursday, following a broader rally in risk-driven markets amid growing expectations for a September interest rate cut. However, speculation regarding further token distributions by bankrupt crypto exchange Mt. Gox capped the gains.

In a separate development, data showed a sharp downward revision in U.S. labor market figures, stoking concerns about a potential recession.

Bitcoin price up: BTC rose 2.4% to 60,751.8 by 00:50 ET (04:05 GMT). The token has been trading within a narrow range this week and encountered resistance at remaining above $60,000.

Mt. Gox wallets mobilized tokens: Wallets linked to the defunct crypto exchange Mt. Gox were seen mobilizing about $700 million of tokens on Wednesday, following an earlier move of around $2 billion.

The exchange began returning tokens to customers from the 2014 hack in early July, sparking speculation that these distributions could lead to an increase in Bitcoin supply and selling pressure.

The exact amount of Bitcoin held by Mt. Gox remains uncertain, but Coindesk estimates put the figure at 46,000 tokens, or $28 billion at the current spot price.

Rate cut hopes clash with recession fears: Expectations for a September rate cut were fueled by minutes from the Federal Reserve’s late-July meeting, which showed policymakers leaning toward lower rates.

Traders were divided on whether the cut in September will be 25 or 50 basis points, according to CME Fedwatch.

Further support for lower rate expectations came from a sharp downward revision in the U.S. payrolls data for the year to March 2024, indicating a weaker labor market than initially reported.

This reading revived concerns that a cooling labor market could heighten the risk of a U.S. recession this year, a scenario that would bode poorly for risk appetite, despite the prospect of lower interest rates.

However, lower rates generally create a favorable environment for speculative assets like crypto.

Crypto prices today: Altcoins follow Bitcoin higher, but gains capped

Broader cryptocurrency prices rose in tandem with Bitcoin and a broader risk-on mood, but overall gains were still limited.

World No. 2 token Ether price edged up 1.1% to $2,622.35, while SOL slipped 0.5%.

MATIC soared over 13%, whereas ADA and XRP gained 2.8% and 0.3%, respectively.

Among meme tokens, DOGE rose 1.2%.

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