Bitcoin Climbs Over $57K, With Some Saying Mt. Gox Sales Already ‘Priced In’
Bitcoin has surged past the $57,000 mark, reversing a 4% loss and regaining its momentum. This recovery comes amid changing market sentiments, as traders shift their focus from the ongoing Mt. Gox repayments to upcoming U.S. Federal Reserve policies.
Mt. Gox Impact Diminishing
The market’s attention has moved away from the Mt. Gox repayments, which initially caused significant concern among traders. Bitcoin experienced one of its sharpest declines last week, dropping over 8% in a few hours. This fall was triggered by the movement of substantial amounts of Bitcoin from Mt. Gox to the bitBank exchange.
However, according to Yuya Hasegawa, a crypto market analyst at bitBank, the market had already priced in the impact of these movements. “Bitcoin was already fluctuating around $54,000 by the time Mt. Gox’s trustee officially announced that they had commenced repayment,” said Hasegawa. “The price bounced back after the announcement and briefly recovered $58,000 during the weekend.”
Federal Reserve Policies in Focus
As the dust settles on the Mt. Gox repayments, traders are now closely watching U.S. Federal Reserve activities. The latest U.S. Consumer Price Index (CPI) report is scheduled for Thursday, and Federal Reserve Chair Jerome Powell is set to testify before Congress on Tuesday and Wednesday. These events are anticipated to provide insights into the central bank’s potential easing of monetary policy in the coming months.
Philippe Bekhazi, CEO and co-founder of digital asset services firm XBTO, notes that the summer months often bring slower market activity. “It’s a case of more summer blues for investors”, shared Bekhazi. “The bottom line is sellers are more motivated than buyers right now. Lots of people are on holiday, many small miners are shutting down and long-term holders are trimming their positions”.
Broad-Based Gains in the Crypto Market
Bitcoin is not the only cryptocurrency experiencing gains. Ether has surpassed $3,000 again after a brief dip, and other major altcoins like Cardano, Solana, BNB, and Dogecoin have also seen price increases. Celestia’s TIA token, in particular, has jumped 15%, leading gains among tokens with a market capitalization between $1 billion and $5 billion.
