Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Bitcoin price today: flat at $67.7k amid rate fears; MT Gox risk eases

Published 05/29/2024, 01:24 AM
Updated 05/29/2024, 10:38 AM
© Reuters
- Bitcoin price remained flat on Wednesday, staying squarely within a recent trading range as caution over U.S inflation and interest rates kept traders largely averse towards risk-driven assets such as crypto.

Earlier in the day, the world’s biggest cryptocurrency saw some price relief after media reports suggested that crypto exchange Mt Gox clarified had no immediate plans to sell its massive Bitcoin holdings, although it was preparing a plan to repay creditors.

Bitcoin stood nearly unchanged over the past 24 hours to $67,709.6 by 10:32 ET (14:32 GMT). The token remained squarely within a $60,000 to $70,000 range seen over the past two months.

Mt Gox seen mobilizing Bitcoin holdings, but no sales happen 

Bitcoin was spooked by bankrupt crypto exchange Mt Gox moving about $9 billion worth of the token this week, which sparked speculation that the exchange was planning to offload the token in order to repay its creditors and account holders.

But later reports said that the exchange had no plans to immediately offload any tokens, although it was still preparing to repay its obligations. 

Former Mt Gox CEO Mark Karpeles said that the Bitcoins being moved were likely the trustees moving the tokens in preparation for an eventual distribution, and that there was no imminent sale happening.

Mt Gox has been a key point of contention for Bitcoin traders, given that the now defunct exchange has a massive pool of tokens it is likely to liquidate to repay creditors. Such a liquidation could present massive immediate selling pressure on the world’s biggest cryptocurrency. 

Crypto price today: Altcoins slip as rate fears weigh on sentiment

Most major altcoins fell on Wednesday, with world no.2 token Ether down 2.3% at $3,771.55. The token remained close to two-month peaks, retaining a bulk of its recent gains after the Securities and Exchange Commission marked some progress towards the approval of an exchange-traded fund (ETF) that directly tracks the token.

Similar spot products also began trading in UK markets. 

Other altcoins were also in the red amid persistent concerns over high-for-longer interest rates and sticky inflation.

XRP rose 0.4%, while SOL dropped 1%. Meme tokens performed better, with SHIB jumping 6%, while DOGE added 1.8%.

Focus this week was squarely on PCE price index data, which is the Federal Reserve’s preferred inflation gauge. The reading is due on Friday and is likely to factor into the central bank’s plans for interest rates. 

The data comes as a string of Fed officials warned that rates will remain high for longer- a scenario that bodes poorly for crypto.

Blackrock (NYSE:BLK) ETF flips Grayscale’s GBTC, becomes biggest spot bitcoin ETF

BlackRock’s spot bitcoin ETF is now the largest fund of this kind, surpassing Grayscale's GBTC following a $102 million inflow on Tuesday.

As of Wednesday morning, BlackRock's IBIT holds nearly $20 billion worth of bitcoin, while Grayscale's GBTC holds $19.7 billion after witnessing $105 million in outflows on Tuesday. Since its launch in January, IBIT has attracted $16.5 billion in investments, while investors have withdrawn $17 billion from the Grayscale fund.

On Tuesday, BlackRock incorporated the bitcoin ETF into its income and bond-focused funds. The firm’s Strategic Income Opportunities Fund (BSIIX) now holds over $3.5 million worth of IBIT, and its Strategic Global Bond Fund (MAWIX) holds $485,000.

The increased buying activity for IBIT comes amid a bullish trend for bitcoin and the broader crypto market. This momentum has been fueled in part by the listing approval for ether ETFs and renewed support for cryptocurrencies among U.S. political parties.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.