Bitcoin (BTC) Climbs Back Above $57K, with Some Market Observers Saying Mt. Gox Sales Already ‘Priced In’

Markets have priced in Mt. Gox’s ongoing repayments and U.S. policies could now start influencing the market, one trading desk said.

Bitcoin price rose Monday morning in Asia, reversing a 4% loss from the previous session. Ether and dogecoin also advanced.

Bitcoin was trading in the green, up 0.8% over the past 24 hours, at $57,163 by 09:10 AM (IST). BTC fell over 7% last week, dropping to as low as $53,600 on Friday after defunct crypto exchange Mt. Gox started moving millions of dollars worth of the token to the Japan-based bitBank exchange, among other transactions, as part of its ongoing user repayments.

However, trading desks told CoinDesk in separate emails on Monday that they expect less market impact from Mt. Gox’s wallet movements going forward.

“Bitcoin was already fluctuating around $54,000 by the time Mt.Gox’s trustee officially announced that they had commenced repayment,” Yuya Hasegawa, crypto market analyst at bitBank, told CoinDesk. “The price bounced back after the announcement and briefly recovered $58,000 during the weekend.”

“The market had overly priced in the repayment before it actually started, and later reacted to the (U.S.) jobs report on Friday, which was announced after the beginning of Mt.Gox’s repayment,” Hasegawa added. “This suggests that the market’s concern for Mt.Gox’s repayment is starting to wane and their focus is shifting back to the Fed’s policy decisions.”

The latest U.S. Consumer Price Index (CPI) report is set to be released on Thursday. Meanwhile, Federal Reserve Chair Jerome Powell will testify to Congress on Tuesday and Wednesday, which could provide further insight into the central bank’s intentions regarding monetary policy in coming months.

Elsewhere, some market participants expect muted price action to continue in the coming weeks due to the summer holiday months.

“It’s a case of more summer blues for investors,” Philippe Bekhazi, CEO and co-founder of digital asset services firm XBTO, told CoinDesk in an email. “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.”

“However, the key thing here is that this pattern is not really any different to what we normally see following the months after a bitcoin halving event,” Bekhazi added, referring to the seasonality that is commonly observed in bitcoin market cycles.

Among other major tokens, ether rose 2.3% over the past 24 hours to $3,015. The second-largest cryptocurrency by market capitalization fell below the $3,000 level on Friday for the first time since July 12.

Solana’s SOL and BNB Chain’s BNB both added over 1%, while dogecoin advanced 1.4%.

Over the past seven days, ether led gains among the majors with a 13.5% increase, followed by dogecoin’s 8.3% gain. Bitcoin fell 3.6% last week.

The CoinDesk 20, an index that tracks the performance of the largest 20 cryptocurrencies, was up 0.2% on Monday. The index fell over 7% last week, snapping a seven-week rally.

Meanwhile, Celestia’s TIA led gains among tokens with a market capitalization between $1 billion and $5 billion, jumping 15% ahead of its flagship Modular Summit conference scheduled for Thursday.

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