Bitcoin
falls to two-month low; $50K becomes key support By Investing.com
Investing.com– Bitcoin’s price fell sharply to a two-month low on Thursday, breaking through a key support level as uncertainty over several selling pressure points, most notably the now-defunct Mt Gox exchange, kept traders averse to the token.
The world’s largest cryptocurrency received little support from a weak dollar, which fell amid increased bets on interest rate cuts by the Federal Reserve. Broader cryptocurrency prices also followed Bitcoin lower.
At 06:00 ET (10:00 GMT), it was down 5% at $57,722.0, just above the session low of $57,053.
Mt Gox dump fears hit Bitcoin
Bitcoin suffered steep losses last week as traders positioned themselves for a potential sell-off event stemming largely from now-defunct cryptocurrency exchange Mt Gox.
The exchange’s liquidators said they will begin returning Bitcoin stolen during a 2014 hack to customers starting in early July. While the scale of the distribution remained unclear, traders were betting that given Bitcoin’s massive price appreciation over the past decade, most recipients of the token would be inclined to sell.
Such a scenario presents a large amount of selling pressure on Bitcoin. Several major whales were seen mobilizing Bitcoin on exchanges for a selloff, while the token was also pressured by the reported sale of tokens confiscated by the German government.
Fears of a sell-off have caused traders to become largely averse to the world’s largest cryptocurrency. This selling pressure has spread to broader crypto markets, even as recent data shows some improvement in capital flows into cryptocurrencies.
Bitcoin market “remarkably robust”
However, despite these losses, new analysis from Glassnode suggests that the Bitcoin market remains remarkably robust. According to the on-chain analytics platform, aggregate investor profitability is still strong, with the average coin maintaining a 2x earnings multiple.
Glassnode’s analysis reveals that the average coin in profit holds an unrealized gain of $41,300, with a cost basis of approximately $19,400, while the average coin in loss holds an unrealized loss of $5,300, with a cost basis of about $66,100. This divergence highlights potential selling pressure points as investors weigh realizing gains against mitigating losses.
The average cost per active investor remains around $50,000, Glassnode said, a key level the market needs to stay above to keep the macroeconomic market bullish.
Cryptocurrency Price Today: Altcoins Fall, Rate Optimism Provides Little Support
Broader cryptocurrency prices also retreated on Thursday and have also suffered over the past week.
The world’s No. 2 token fell 5.4% to $3,161.49 as traders largely ignored recent speculation about a spot Ether exchange-traded fund. Ether hit a more than one-month low, having largely erased gains made in May on the hype around a spot ETF.
and fell between 4% and 8%, while among the meme coins, and fell about 8% each.
Cryptocurrency prices got little support from a weak dollar, which fell as a series of weak labor market and business activity readings raised expectations of interest rate cuts by the Fed.
Aggressive signals in the minutes of the Fed’s June meeting tempered that optimism somewhat, while several Fed officials also sounded cautious about interest rate cuts.
The focus now turns to key data released on Friday, which should offer more definitive clues about the jobs market.
(Ambar Warrick contributed to this article.)