The price of Bitcoin saw a 4% increase in the past 24 hours, reaching $63,259.0 by 00:57 ET (04:57 GMT). Despite this recovery, the sentiment towards Bitcoin and the broader crypto markets remained largely negative. This negativity was fueled by concerns over a potential major liquidation event involving the now defunct exchange Mt Gox distributing stolen tokens. Traders speculated that recipients of the stolen tokens would be inclined to sell, adding significant selling pressure and potentially leading to substantial price declines in Bitcoin.
Anticipation of more cues on U.S. interest rates from the Federal Reserve and economic data added to the market uncertainty. The announcement that the Mt Gox liquidators would begin distributing stolen Bitcoin from early July further heightened concerns among investors. Additionally, the weakening of the dollar by 0.2% on Monday provided some support to Bitcoin’s price rise.
Altcoin prices experienced a rise on Monday, recovering from steep losses in June. The world’s second-largest token, Ether, surged by 3.7% to $3,490.79 amid speculation that the Securities and Exchange Commission could approve a spot Ether exchange-traded fund in the near future. Other altcoins like SOL, XRP, and ADA also saw modest gains ranging from 1.5% to 8%. Meme tokens like DOGE and SHIB were not left behind, each rising over 4%. However, trading volumes for these tokens remained relatively low.
The overall sentiment towards the cryptocurrency market remained cautious as investors awaited more clarity on U.S. interest rates. Federal Reserve Chair Jerome Powell’s upcoming speech, the release of the Fed’s June meeting minutes, and the Nonfarm payrolls data scheduled for Friday were all anticipated to provide further cues on interest rates. Traders were increasingly betting on a 25 basis points rate cut by the Fed in September, a belief that offered some level of support to the crypto market amidst the ongoing uncertainty.
The cryptocurrency market continues to face volatility and uncertainty driven by various factors including regulatory developments, market sentiment, and macroeconomic indicators. Investors are advised to exercise caution and stay informed about the latest developments to navigate this challenging environment effectively.