Investing.com — Bitcoin prices fell on Thursday as a recent rally was cut short by lingering concerns over rising token supplies, amid little sign that selling pressure from Mt Gox and the German government has eased.
The world's largest cryptocurrency has suffered a 15% drop over the past month and remained on the brink of a bear market as fears of an increase in token supply hit markets.
fell 2.7% over the past 24 hours to $57,772.4 as of 01:33 ET (05:33 GMT). The token saw limited relief thanks to some bargain buying this week.
Mt Gox, German sell-offs and miner capitulation weigh on Bitcoin
The defunct cryptocurrency exchange Mt Gox remained a key point of contention for Bitcoin, after the exchange's trustees said they had begun returning tokens to customers affected by a hack in 2014.
It was not immediately clear how much this distribution will amount to, but wallets linked to the exchange were seen moving around $9 billion worth of tokens earlier this year.
Additionally, the German government was also seen unloading confiscated Bitcoin from a hacking website, and could potentially hold at least $2 billion worth of tokens.
Sharp declines in the Bitcoin price have raised fears that major Bitcoin miners may start selling some of their holdings to break even, especially after the Bitcoin halving reduced miner rewards earlier this year.
Bargaining helps limit Bitcoin losses
Bitcoin still held above four-month lows hit in early July as recent price drops attracted a lot of bargain buying in the token.
Capital inflows into Bitcoin investment products, particularly exchange-traded funds, increased over the past week, helping to inspire some confidence in the currency. This also kept the Bitcoin price away from recent lows.
Sentiment toward cryptocurrency ETFs is likely to improve in the coming weeks, especially as the Securities and Exchange Commission prepares to make a key decision on spot ETFs for the world's No. 2 token, Ether.
Cryptocurrency prices today: altcoins mixed, CPI data expected
Among broader cryptocurrency prices, major altcoins have seen mixed results but have also suffered heavy losses in recent weeks as Bitcoin selling has spilled over.
fell 0.1% to $3,099.20, while adding 1%. rose 2.5%, while sliding more than 2%. Among meme tokens, it fell 1.1%.
Rising optimism about US interest rate cuts weighed on the dollar but still provided little support for cryptocurrency prices. Federal Reserve Chairman Jerome Powell noted further progress in reducing inflation but warned the central bank still needed more confidence to cut interest rates.
Attention now turned to key data due later on Thursday for further clues on rates.
