Bitcoin price today: slumps to 2-mth low at $58k amid Mt Gox jitters

Investing.com-- Bitcoin price fell sharply to a two-month low on Thursday, breaking past a key support level as uncertainty over several points of selling pressure, chiefly defunct exchange Mt Gox, saw traders remain averse towards the token. 

The world’s biggest cryptocurrency took little support from weakness in the dollar, which fell amid increased bets on interest rate cuts by the Federal Reserve. Broader crypto prices also followed Bitcoin lower.

Bitcoin fell 3.2% in the past 24 hours to $59,046.0 by 23:37 ET (03:37 GMT). The token had fallen as far as $58,055.4.

Mt Gox, dumping fears batter Bitcoin

Bitcoin was nursing steep losses over the past week as traders positioned for a potential mass sale event, stemming largely from defunct crypto exchange Mt Gox.

The liquidators of the exchange said they will begin returning Bitcoin stolen during a 2014 hack to clients from early July. While the scale of the distribution remained unclear, traders bet that given Bitcoin’s massive price appreciation in the past decade, most receivers of the token would be inclined to sell.

Such a scenario presents a large amount of selling pressure on Bitcoin. Several major whales were seen mobilizing Bitcoin on exchanges for a sale, while the token was also pressured by reported selling of confiscated tokens by the German government. 

Fears of a mass sale saw traders turn largely averse towards the world’s biggest cryptocurrency. This selling pressure spilled over into broader crypto markets, even as recent data showed some improvement in capital flows into crypto. 

Crypto price today: Altcoins tumble, rate optimism provides little support 

Broader crypto prices also retreated on Thursday and were nursing steep losses over the past week.

World no.2 token Ether fell 3.5% to $3,242.79 as traders largely disregarded recent speculation over a spot Ether exchange-traded fund. Ether touched an over one-month low, having largely wiped out gains made in May on hype over a spot ETF.

XRP, SOL and ADA slid between 4% to 9%, while among meme coins, SHIB and DOGE shed around 6% each.

Crypto prices took little support from weakness in the dollar, which fell as a swathe of weak labor market and business activity readings pushed up expectations of interest rate cuts by the Fed.

Hawkish signals from the minutes of the Fed’s June meeting somewhat tempered this optimism, while several Fed officials also sounded caution over interest rate cuts.

Focus was now on key nonfarm payrolls data due on Friday, which is set to offer more definitive cues on the labor market.