Investing.com — Bitcoin prices fell on Thursday, reversing course after a major rally as lingering fears over token distributions by defunct cryptocurrency exchange Mt Gox remained in place.
Bitcoin had rebounded from near four-month lows in recent sessions as the prospect of a Donald Trump presidency had traders pricing in the possibility of a much friendlier regulatory environment.
fell 1.3% over the past 24 hours to $64,818.4 as of 01:52 ET (05:52 GMT).
Mt Gox jitters persist after $2.8 billion move
Concerns about token distributions by Mt Gox remained rife, especially as wallets associated with the exchange were seen moving $2.8 billion worth of tokens earlier this week.
The exchange had recently said it would begin returning tokens stolen in a 2014 hack to creditors in July. It was not clear how many bitcoins the total distribution would entail.
This has raised concerns that a sharp increase in Bitcoin supply will increase selling pressure on the token and drive down its prices, given that recipients of the tokens will be more inclined to sell them after a stellar rise over the past decade.
Fears over Mt Gox had driven sharp declines in Bitcoin through early July, putting the token at near four-month lows and close to levels that could cause some capitulation for miners.
But the token rallied sharply this week amid growing speculation about a second Trump presidency, given that the former president has expressed support for cryptocurrencies in his recent campaign efforts.
Trump is also scheduled to speak at the Bitcoin Conference in Nashville in late July. The former president has seen a huge surge in popularity following a failed assassination attempt last week.
In addition, cryptocurrencies benefited from the recent weakness of the dollar, amid growing expectations that the Federal Reserve will begin cutting interest rates as early as September.
Cryptocurrency Price Today: Altcoins Pull Back as Rally Cools
Among cryptocurrency prices in general, major altcoins also retreated from recent gains as the rally cooled.
The world's No. 2 token fell 2.2% to $3,423.02, though it still remained relatively upbeat on the prospect of cash exchange-traded funds being approved for U.S. markets.
fell 3.3%, reversing course after rumors of a settlement between the company and the Securities and Exchange Commission sparked strong gains on Wednesday.
and moved in a flat to down range, while among meme tokens, SHIB fell 3.8% while DOGE lost 2.7%.
