Investing.com — Bitcoin prices fell on Thursday amid renewed concerns over token distributions by Mt Gox and as capital outflows from major exchanges also fueled risk-averse sentiment.
Fears of increased selling pressure largely offset positive signals on U.S. inflation and interest rates, causing Bitcoin and other cryptocurrency markets to lag behind the risk-driven rally in their broader peers.
fell nearly 4% to $58,467.0 as of 01:46 ET (05:46 GMT).
Mt Gox fears back in focus after test transaction
Fears of selling pressure stemming from token distributions by defunct cryptocurrency exchange Mt Gox came to the fore again this week, after a wallet associated with the exchange containing $2 billion worth of Bitcoin was spotted conducting test transactions this week. The move could herald a new round of token distributions by the exchange, after it began returning Bitcoin stolen during a 2014 hack to its customers in July.
While it is unclear how much the Mt Gox Bitcoin distributions will amount to, traders were nervous that the distributions presented more selling pressure on the world's largest cryptocurrency.
Mt Gox was seen moving around $9 billion worth of Bitcoin earlier this year.
USDT outflows could herald further price weakness – IntoTheBlock
Digital asset research firm IntoTheBlock said on Wednesday that around $1 billion worth of the stablecoin was withdrawn from cryptocurrency exchanges this week.
Massive USDT outflows have heralded Bitcoin price weakness in recent months, and the move could indicate that traders were pulling money from exchanges in preparation for a risk-off event.
Cryptocurrency price today: Altcoins fall as CPI data offers little support
Broader cryptocurrency prices fell on Thursday, lagging a rally in other risk-driven assets, as fears over Mt Gox distributions and exchange withdrawals weighed.
Softer-than-expected inflation data did little to boost cryptocurrency prices, even as broader risk-driven markets, especially stocks, rallied on the prospect of lower interest rates.
But since this is still a month-on-month increase, traders are thought to be positioning for a smaller interest rate cut by the Federal Reserve in September. This thinking limited the amplitude of the risk appetite move.
The world’s No. 2 token fell 3.1% to $2,638.30, while and fell more than 1% each.
Among meme tokens, it fell by 3.4%.
