Bitcoin, Ether Rise as Bargain Hunters Step In, but Selling Fears Remain

Investing.com-- Bitcoin price rose on Wednesday, recovering further from recent losses as bargain hunters took advantage of recent price declines

World no.2 token Ether also advanced on Wednesday, extending a recent recovery as markets awaited a key decision from the Securities and Exchange Commission on a spot exchange-traded fund.

Ether rose 1.2% to $3,106.66 by 01:40 ET (05:40 GMT) in the past 24 hours, continuing to trade within a recent range as it recovered from lows of around $2,800 last week.

The world’s second-largest cryptocurrency briefly crossed $3,120 during the session, but remained well below record highs of over $4,000 hit in April.

Ether, like other cryptocurrencies, benefited chiefly from bargain buying into recent price declines. Bargain hunters were seen stepping into markets since last week, with crypto investment products, such as Bitcoin ETFs, seeing capital inflows on this trend.

But sentiment towards crypto remained largely on edge, especially amid uncertainty of just how many tokens defunct crypto exchange Mt Gox will distribute as part of compensation for a 2014 hack.

Mt Gox was seen mobilizing about $9 billion of Bitcoin earlier this year- representing a sizeable chunk of current supply. A sale at that scale presents steep losses for Bitcoin’s price.

Additionally, the German government was also seen offloading Bitcoin confiscated from a piracy website. Reports said the government held at least $2 billion worth of Bitcoin, and was steadily selling the token in the open market.

Recent weakness in the dollar also offered some relief to Ether, although the greenback steadied this week following testimony from Federal Reserve Chair Jerome Powell, where he gave no clear cues on plans to cut interest rates.

Focus is also on key consumer price index inflation data, due on Thursday.

Crypto price today: Bitcoin benefits from bargain buying, selling fears remain

Bitcoin price recovered on Wednesday from recent losses on bargain buying, although fears of a large-scale sale by Mt Gox and the German government kept sentiment in the red.

Bitcoin rose 2.8% in the past 24 hours to $58,870.5 by 01:40 ET (05:40 GMT), briefly crossing $59,000 as it recovered from over four-month lows.

The world’s largest currency benefited chiefly from bargain buying into recent price declines. Bargain hunters were seen stepping into markets since last week, with crypto investment products, such as Bitcoin ETFs, seeing capital inflows on this trend.

But sentiment towards crypto remained largely on edge, especially amid uncertainty of just how many tokens defunct crypto exchange Mt Gox will distribute as part of compensation for a 2014 hack.

Mt Gox was seen mobilizing about $9 billion of Bitcoin earlier this year- representing a sizeable chunk of current supply. A sale at that scale presents steep losses for Bitcoin’s price.

Additionally, the German government was also seen offloading Bitcoin confiscated from a piracy website. Reports said the government held at least $2 billion worth of Bitcoin, and was steadily selling the token in the open market.

Recent weakness in the dollar also offered some relief to Bitcoin, although the greenback steadied this week following testimony from Federal Reserve Chair Jerome Powell, where he gave no clear cues on plans to cut interest rates.

Focus is also on key consumer price index inflation data, due on Thursday.

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