Investing.com– The price of bitcoin rose slightly on Wednesday, but remained within a recent trading range, as caution over U.S. inflation and interest rates kept traders largely reluctant to take action. risk assets such as cryptocurrencies.
But the world's largest cryptocurrency saw some price relief after media reports suggested that cryptocurrency exchange Mt Gox clarified that it had no immediate plans to sell its huge Bitcoin holdings, although it was preparing a plan to pay the creditors.
rose 1.5% in the last 24 hours to $68,826.3 at 01:00 ET (05:00 GMT). The token remained within the $60,000 to $70,000 range seen over the past two months.
Mt Gox Seen Mobilizing Bitcoin Holdings, But No Sales Made
Bitcoin was spooked by the bankruptcy of cryptocurrency exchange Mt Gox, which moved around $9 billion in tokens this week, sparking speculation that the exchange was planning to dump the token to pay its creditors and account holders.
But later reports said the exchange had no plans to immediately offload any tokens, although it was still preparing to pay off its obligations.
Former Mt Gox CEO Mark Karpeles said the Bitcoins being moved were likely trustees moving the tokens in preparation for eventual distribution, and that an imminent sale was not occurring.
Mt Gox has been a key point of contention for Bitcoin traders, as the now-defunct exchange has a huge reserve of tokens that it will likely liquidate to pay creditors. Such a sell-off could present enormous immediate selling pressure on the world's largest cryptocurrency.
Crypto Price Today: Altcoins Advance, Rate Fears Limit Gains
Most major altcoins rose slightly on Wednesday, with the world's No. 2 token rising 0.8% to $3,864.29. The token held near two-month highs, retaining most of its recent gains after the Securities and Exchange Commission marked some progress toward approving an exchange-traded fund that directly tracks the token.
Similar spot products also began trading in UK markets.
Other altcoins inched higher, although gains were limited amid lingering concerns about longer-term high interest rates and sticky inflation.
rose 0.8%, while it added 3.6%. Among meme tokens, they rose by almost 17% and added 2.6%.
This week the focus was squarely on the data, which is the Federal Reserve's preferred inflation gauge. The reading will be released on Friday and will likely factor into the central bank's plans for interest rates.
The data comes as a number of Fed officials warned that rates will stay high for longer, a scenario that bodes poorly for cryptocurrencies.
