Investing.com — Bitcoin price fell sharply to a two-month low on Thursday, breaking above a key support level, as uncertainty over several selling pressure points, most notably the defunct Mt Gox exchange, kept traders wary of the token.
The world's largest cryptocurrency did not receive much support from the weak dollar, which fell amid increased bets on interest rate cuts by the Federal Reserve. Cryptocurrency prices in general also followed bitcoin's decline.
fell 3.2% over the past 24 hours to $59,046.0 as of 23:37 ET (03:37 GMT). The token had previously fallen as low as $58,055.4.
Dumping and Mt Gox fears hit Bitcoin
Bitcoin suffered heavy losses over the past week as traders positioned themselves for a potential sell-off event, largely due to the defunct cryptocurrency exchange Mt Gox.
The exchange's liquidators said they will begin returning to customers bitcoins stolen during a 2014 hack from early July. While the scale of the distribution remains unclear, traders are betting that given bitcoin's massive price appreciation over the past decade, most recipients of the token would be inclined to sell.
This scenario creates a huge selling pressure on Bitcoin. Several major whales were seen moving Bitcoin on exchanges for a sell-off, while the token was also pressured by the sale of tokens confiscated by the German government.
Fears of a sell-off caused traders to largely turn averse to the world’s largest cryptocurrency. This selling pressure spilled over into the broader cryptocurrency markets, even as recent data showed some improvement in capital flows into cryptocurrencies.
Cryptocurrency price today: Altcoins fall, rate optimism offers little support
Cryptocurrency prices in general also retreated on Thursday, having suffered heavy losses over the past week.
The world’s No. 2 token fell 3.5% to $3,242.79 as traders largely ignored recent speculation about a spot Ether exchange-traded fund. Ether hit a more than one-month low, having largely erased gains made in May on hype about a spot ETF.
and fell between 4% and 9%, while among meme coins, they lost around 6% each.
Cryptocurrency prices received little support from a weaker dollar, which fell as a series of weak labor market and business activity readings raised expectations of interest rate cuts by the Federal Reserve.
The hawkish signals in the minutes of the Federal Reserve's June meeting tempered this optimism somewhat, while several Fed officials also expressed caution about interest rate cuts.
Attention now turns to key data due out on Friday, which will provide more definitive clues on the labor market.
