Investing.com– The price of bitcoin rose on Monday, recovering some of recent losses, although sentiment towards the token market and cryptocurrencies in general remained largely negative.
Markets were nervous about a possible major liquidation event with the now-defunct Mt Gox exchange set to begin distributions of stolen tokens starting this week.
Anticipation of further signals on US interest rates from the Federal Reserve and economic data also kept sentiment on edge.
The token rose 4% in the last 24 hours to $63,259.0 at 00:57 ET (04:57 GMT). The currency also received some support from the weakness of the dollar, which lost 0.2% on Monday.
Mt Gox Bitcoin distribution is about to begin
Mt Gox liquidators said they will begin distributing Bitcoin stolen during a 2014 hack from early July.
Traders speculated that recipients of the stolen tokens will largely be inclined to sell, given that Bitcoin has seen a massive rise in its valuation over the past decade.
Such an event places enormous selling pressure on Bitcoin and could lead to substantial price losses. The token suffered heavy losses at the end of June due to this situation.
Crypto investment products also saw two consecutive weeks of outflows amid fears of selling pressure on Bitcoin.
Crypto Price Today: Altcoins Rise on Rate Jitters
Among the broader cryptocurrency markets, altcoin prices rose on Monday, recovering some of June's steep losses.
The world's No. 2 token jumped 3.7% to $3,490.79, also supported by speculation that the Securities and Exchange Commission will approve a spot Ether exchange-traded fund as soon as this week.
and rose between 1.5% and 8%, although trading volumes on all three were thin.
Meme tokens and rose more than 4% each.
But sentiment towards cryptocurrencies still remains rocky ahead of a series of new signals on US interest rates this week.
Federal Reserve Chair Jerome Powell is scheduled to speak on Tuesday, while results from the Fed's June meeting are scheduled for Wednesday.
The data will be released on Friday and will also provide further clues on interest rates.
Traders were seen increasing their bets that the Federal Reserve will do so, a notion that also offered some support to cryptocurrencies.
