Bitcoin (BTC) Price Drops as Mt. Gox Exchange Mobilizes $2B Worth of Tokens

Bitcoin fell by 2.8% to $59,397.1, failing to stay above the support level of $60,000. A wallet linked to Mt. Gox reportedly moved about $2B worth of bitcoins, raising concerns about a possible new token distribution.

Bitcoin price slipped on Wednesday as a wallet linked to defunct crypto exchange Mt. Gox appeared to have moved tokens to the tune of around $2 billion, sparking concerns over fresh rounds of distribution by the exchange.

Bitcoin dropped 2.8% to $59,397.1, failing to sustain levels above the $60,000 support. A wallet linked to Mt. Gox reportedly shifted about $2 billion in bitcoins, according to some blockchain trackers, raising concerns about a potential new token distribution.

In July, the previously dormant Mt. Gox exchange started returning tokens stolen during a 2014 hacking incident to its customers. This led to a sharp decline in bitcoin price on fears of increased supply and a massive sell-off. While bitcoin has recovered the bulk of those initial losses, traders remain sensitive to any potential new token distributions by the exchange. It remains unclear how much bitcoin is still left at Mt. Gox, though the exchange moved $9 billion in tokens earlier this year.

Bitcoin is struggling to breach the $60,000 level, awaiting further cues. Despite easing concerns over a U.S. recession, bitcoin remained under pressure and failed to convincingly gain ground above the level, even as broader market sentiment improved on expectations of lower interest rates and a soft landing in the U.S. economy. However, bitcoin’s performance lagged that of equities, which clocked gains of over 10% from lows.

This trend coincided with a decline in capital flows into crypto investment products. Trading volumes in these products also remained lower compared to peaks reached during the launch of spot bitcoin ETFs earlier this year, according to available data.

Altcoins also declined on Wednesday, largely tracking bitcoin’s losses. Ether, the second-largest cryptocurrency, slipped 3.4% to $2,594.51. SOL and XRP shed 2-3% each, while MATIC and ADA clocked gains of 5.3% and 3.3%, respectively. Among meme tokens, DOGE lost 1.4%.

Markets this week are鏽ing on additional signals for U.S. interest rate cuts, ahead of the release of minutes from the Federal Reserve meeting held in late July. On Friday, Fed Chair Jerome Powell is set to speak at the Jackson Hole symposium, where he is likely to offer further insights on future interest rates, amid growing expectations for a possible rate cut in September.

Markets this week are awaiting further signals for U.S. interest rate cuts, ahead of the release of minutes from the Federal Reserve meeting that was held in late July. On Friday, Federal Reserve Chair Jerome Powell is set to speak at the Jackson Hole symposium, where he is likely to offer further insights on future interest rates, amid growing expectations for a possible rate cut in September.

Earlier, Bitcoin rose to $59,305 after a short-term drop. Investors plowed $155 million into ethereum-related products, while bitcoin products saw only $13 million. Markets now await U.S. inflation data.

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