Bitcoin price drops to $59k after Mt Gox moves $2 billion in tokens

From Investing.com

August 21, 2024 2:01 AM:

Bitcoin price dropped as Mt Gox moved $2 billion worth of tokens, sparking fears of more distributions from the defunct exchange. The broader risk sentiment cooled as Wall Street ended an eight-day winning streak, with traders now looking for positive cues to continue the mid-August rebound rally.

A wallet linked to Mt Gox shifted $2 billion in Bitcoin, hinting at potential further token distributions. The exchange started returning tokens stolen in a 2014 hack back to clients, leading to fears of increased supply and a possible mass sale event in July. Uncertainty remains over the amount of Bitcoin still held by Mt Gox.

Bitcoin struggled to stay above $60,000 despite recovering from early August losses with diminishing fears of a U.S. recession. While market sentiment improved due to expectations of interest rate cuts and a soft landing for the U.S. economy, Bitcoin lagged behind stocks. Capital inflows into crypto investment products also dwindled.

Altcoin prices followed Bitcoin’s decline on Wednesday, with Ether dropping 3.4% to $2,594.51. Litecoin and Bitcoin Cash each lost 2-3%, while Cardano and Solana saw gains of 5.3% and 3.3%, respectively. Dogecoin fell 1.4%. Market focus shifted to U.S. interest rate cut cues ahead of the release of the Federal Reserve’s late-July meeting minutes and Chair Powell’s speech at the Jackson Hole Symposium.

Read more at Investing.com: down to $59k as Mt Gox token movements rattle sentiment By Investing.com