Bitcoin price fell on Thursday, reversing course after a significant rebound as concerns over the cryptocurrency’s distributions by defunct crypto exchange Mt. Gox persist.
Bitcoin had rebounded from its lowest levels in nearly four months in the past few sessions, as the prospect of a Donald Trump presidency raised the possibility of a more friendly regulatory environment for bitcoin traders.
Bitcoin fell 1.3% over the past 24 hours to $64,878.4 by 12:10 Riyadh time.
Tensions persist at Mt Gox after $2.8 billion liquidation
Concerns over Mt. Gox’s token distributions persist, especially as wallets linked to the exchange were seen amassing $2.8 billion worth of tokens earlier this week.
The exchange recently indicated that it would begin returning tokens stolen in a 2014 hack to creditors in July. It remains unclear how much of the total bitcoin distribution will entail.
This has raised concerns that a sharp increase in the supply of Bitcoin could increase selling pressure on the token and drive down its price, as token holders would be more inclined to sell them after the massive rally they have seen over the past decade.
Concerns about Mt. Gox led to sharp declines in Bitcoin during early July, putting the token at its lowest levels in nearly four months and close to levels that could cause some capitulation among miners.
But the currency has rebounded sharply this week amid growing speculation about a second Trump presidency, given that the former president expressed support for cryptocurrencies in his last election campaign.
Trump is also scheduled to speak at a Bitcoin conference in Nashville later in July. The former president has seen his popularity soar following last week’s failed assassination attempt.
In addition, cryptocurrencies have benefited from the recent weakness in the dollar, amid growing expectations that the Federal Reserve will start cutting interest rates starting in September.
Cryptocurrency Prices Today: Altcoins Decline as Cryptocurrency Recovery Calms
Among the broader cryptocurrency prices, major altcoins also pared recent gains as the rebound rally cooled.
The world's No. 2 token, Ether, fell 2.2% to $3,423.02, though it remains relatively buoyant despite the potential approval of spot exchange-traded funds for U.S. markets.
XRP also fell 3.3%, retreating from its previous session after rumors of a settlement between Ripple and the Securities and Exchange Commission sparked strong gains on Wednesday.
ADA and SOL moved in a flat to lower range, while SHIB fell 3.8% among SHIB tokens, while DOGE fell 2.7%.
