Bitcoin Tumbles as Mt Gox and German Government Sales, Miner Capitulation Weigh

Bitcoin price fell on Thursday as a recent recovery was cut short by ongoing concerns over large token supplies, without much indication that selling pressure from Mt Gox and the German government had subsided.

The world’s largest cryptocurrency was nursing a 15% decline over the past month, and remained on the edge of a bear market as fears of large token supplies battered markets.

fell 2.7% over the past 24 hours to $57,772.4 by 01:33 ET (05:33 GMT). The token saw limited recovery from some discount buying this week.

Mt Gox, German sales and miner capitulation weigh on Bitcoin

Defunct crypto exchange Mt Gox remained a central point of contention for Bitcoin, after the exchange’s trustees said earlier this year that they would begin returning tokens to customers impacted by a 2014 hack.

It was not immediately clear how large this distribution will be. But wallets linked to the exchange were seen mobilizing around $9 billion in tokens earlier this year.

In addition, the German government was also seen offloading Bitcoin confiscated from a piracy website, and could be holding at least $2 billion in tokens.

Steep declines in Bitcoin’s price also raised concerns that major Bitcoin miners may be selling some of their holdings to break even, especially after Bitcoin’s halving slashed miner rewards earlier this year.

Discount buying helps limit Bitcoin losses

Bitcoin still remained above four-month lows hit earlier in July, as the recent price declines attracted a wave of discount buying into the token.

Capital inflows into Bitcoin investment products, notably exchange-traded funds, rose over the past week, helping instill some confidence in the currency. This also kept Bitcoin’s price off recent lows.

Sentiment towards crypto 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 world no. 2 token Ether.

Crypto price today: altcoins mixed, CPI data awaited

Among broader cryptocurrency prices, major altcoins were a mixed bag, but were also nursing steep losses in recent weeks as the selling in Bitcoin spilled over.

fell 0.1% to $3,099.20, while ether added 1%. XRP rose 2.5%, whereas solana slid over 2%. Among meme tokens, shiba inu fell 1.1%.

Rising optimism over U.S. interest rate cuts dented the dollar index, but still offered little support to crypto prices. Fed Chair Jerome Powell signaled further progress in bringing down inflation, but warned that the central bank still needed more confidence to cut interest rates.

Focus was now directly on key CPI data, due later on Thursday, for further cues on rates.

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