Bitcoin Price Dips Amid Mt Gox Concerns

Bitcoin price slid on Wednesday as Mt Gox appeared to have mobilized about $2 billion worth of tokens, raising concerns over more distributions from the defunct crypto exchange.

Broader risk sentiment also cooled as Wall Street snapped an eight-day winning streak, with traders now seeking more positive cues to extend a mid-August rebound rally.

Bitcoin dropped 2% to $59,570 by 09:07 ET (13:07 GMT) after failing to hold above the $60,000 support level.

Mt Gox Seen Moving $2 Billion Tokens, Distribution Fears Persist

A wallet associated with Mt Gox was seen mobilizing about $2 billion worth of Bitcoin, potentially preparing for more token distributions.

The defunct exchange began returning tokens stolen during a 2014 hack back to clients in early July, initially triggering steep losses in Bitcoin’s price due to fears of increased supply and a mass sale event.

While Bitcoin recovered most of the initial losses, traders remain on edge over potential future distributions. It is unclear how much Bitcoin Mt Gox holds; the exchange moved about $9 billion worth of tokens earlier this year.

Bitcoin Struggles to Break Above $60k but Institutional Buying Resumes

Bitcoin recovered a bulk of losses marked in early August as fears of a U.S. recession dwindled.

However, the token struggled to maintain its position above the $60,000 level amid few positive signals for crypto markets.

Broader risk sentiment continued to be buoyed by expectations of interest rate cuts and a soft landing for the U.S. economy, but Bitcoin mostly lagged behind stocks’ recovery.

This trend came with dwindling capital inflows into crypto investment products, where trading volumes were at a fraction of highs seen earlier this year.

Despite recent underwhelming performance, institutional investors continue to boost their exposure to ETFs, as highlighted by a report from asset manager Bitwise on Monday.

The report indicated that the total number of institutional investors holding Bitcoin ETFs increased by 14% in the second quarter, rising from 965 to 1,100. Additionally, their share of total assets under management (AUM) in Bitcoin ETFs grew from 18.74% to 21.15%, totaling $11 billion held in BTC ETFs.

Bitwise addressed criticism that Bitcoin ETFs are primarily held by retail investors, calling it “simply untrue.” They noted a faster adoption rate among institutions compared to any ETF in history. Predicting larger Bitcoin ETF inflows in 2025 and 2026, Bitwise emphasized, “The institutions are coming, and they’re coming in size.”

Crypto Price Today: Altcoins Pressured with Fed Cues on Tap

Broader altcoin prices drifted lower on Wednesday, following Bitcoin’s losses. World no.2 token Ether fell 2.2% to $2,581.85.

SOL and XRP shed between 1.6% and 3%, while MATIC and ADA added 7% and 2.2%, respectively. Among meme tokens, DOGE slipped 0.5%.

Markets are focused on U.S. interest rate cue announcements this week, with the Federal Reserve’s late-July meeting minutes due later on Wednesday. The Fed had adopted a dovish tone during the meeting.

Fed Chair Jerome Powell is set to speak at the Jackson Hole Symposium on Friday, potentially offering more insights on interest rates amid growing expectations for a cut in September.

Ambar Warrick contributed to this report.