Bitcoin
recovers to $59K as Mt Gox losses attract bargain buying By Investing.com
Investing.com– Bitcoin’s price rose on Wednesday, further recovering from recent losses as bargain hunters took advantage of recent price drops, although sentiment remained negative amid increased supply due to Mt Gox and the German government.
The world’s No. 2 token Ether also advanced, extending a recent rally as markets awaited a key Securities and Exchange Commission decision on a cash exchange-traded fund.
rose 2.8% in the past 24 hours to $58,870.5 as of 01:40 ET (05:40 GMT), briefly crossing $59,000 as it recovered from more than four-month lows.
Bitcoin benefits from bargain buying, but sell-off fears remain
The world’s largest currency has benefited primarily from bargain-buying in recent price declines. Bargain hunters have been seen entering the markets since last week, with cryptocurrency investment products such as Bitcoin ETFs seeing capital inflows in the wake of the trend.
But sentiment towards cryptocurrencies remained quite tense, especially amid uncertainty over how many tokens the now-defunct cryptocurrency exchange Mt Gox will distribute as part of compensation for a 2014 hack.
Mt Gox was seen mobilizing around $9 billion worth of Bitcoin earlier this year – representing a sizeable chunk of the current supply. A sell-off on this scale presents steep losses for the Bitcoin price.
Additionally, the German government was also seen offloading confiscated Bitcoin from a piracy website. Reports said that the government held at least $2 billion worth of Bitcoin and was constantly selling the token on the open market.
The dollar’s recent weakness has also offered some relief to Bitcoin, although the US currency has stabilized this week following testimony from Federal Reserve Chairman Jerome Powell, who gave no clear indication of plans to cut interest rates.
The focus is also on key inflation data, which will be released on Thursday.
Cryptocurrency Price Today: Ether Gains on ETF Hype, Altcoins Recover
Broader cryptocurrency prices followed Bitcoin’s recovery.
rose 1.2% to $3,106.66, extending a recent rally as markets waited for the SEC to approve issuers’ amended applications for a spot Ether ETF.
The ETF could be approved as early as mid-July and is expected to attract some institutional capital to the world’s second-largest cryptocurrency.
Among other altcoins, it rose 1.9%, also gaining on the prospect of a spot ETF, while and rose 0.9% and 2.6%, respectively.
Among memecoins, it rose 3.9% while adding 0.9%.