Investing.com — Bitcoin price was little changed on Tuesday as anticipation of token distributions from the now-defunct Mt Gox exchange, coupled with closely watched interest rate signals, kept cryptocurrency markets on edge.
Fund flow data showed digital assets marked a third consecutive week of outflows, although sentiment appeared to be improving after sharp outflows during June.
Bitcoin price fell 0.4% over the past 24 hours to $63,039.3 as of 01:19 ET (05:19 GMT). The world's largest cryptocurrency suffered heavy losses during June and remained within a trading range of $60,000 to $70,000 seen for most of the second quarter.
Bitcoin price remains low amid fears over Mt Gox sale
Sentiment toward Bitcoin showed limited signs of improving, especially as Mt Gox managers said they will begin distributing Bitcoin stolen during a 2014 hack in early July, returning the tokens to the exchange's customers.
Mt Gox is believed to have moved around $9 billion worth of bitcoin earlier this year, though it was unclear how much the distributions will entail. However, traders speculated that bitcoin recipients will be more inclined to sell, given that the token has grown exponentially over the past decade.
Such a scenario presents an outsized selling pressure on Bitcoin, which will likely put pressure on prices.
Cryptocurrency outflows slowed in the past week
Data from digital asset manager Coinshares showed on Monday that capital outflows from cryptocurrency investment products slowed sharply in the week to July 1.
But trading volumes remained well below 50% of their weekly average so far this year as retail interest in cryptocurrencies appeared to cool once again.
Ether-linked products saw the largest outflows this week, despite reports suggesting the Securities and Exchange Commission could approve an Ether spot ETF as early as this week.
Cryptocurrency price today: Altcoins remain low amid rate fears
Among broader crypto tokens, altcoin prices stagnated as traders remained averse to cryptocurrencies ahead of key signals on US interest rates.
fell by 0.9%, while y rose slightly.
Among meme tokens, it fell by 2.2%, while it lost 1.3%.
The market's attention was focused exclusively on the direction that would be taken later on Tuesday.
In addition, the results will be announced on Wednesday, while key data will be released on Friday.
Cryptocurrencies received limited support from heightened expectations of a rate cut by the Federal Reserve in September, as traders remained largely biased toward the dollar.
