Bitcoin Price Increases Amid Broader Market Trends

Bitcoin price rose on Thursday, tracking a broader increase in risk-driven markets amid growing bets on a September interest rate cut, although speculation over more token distributions by Mt Gox limited overall gains.

Risk appetite was also tempered by data showing a sharp downward revision in U.S. labor data, which ramped up concerns over a potential recession.

Bitcoin rose 2.1% to $60,862.0 by 09:15 ET (13:15 GMT). The token drifted in a tight trading range for most of this week and struggled to remain above $60,000.

Mt Gox Seen Mobilizing Tokens This Week

Wallets associated with defunct crypto exchange Mt Gox were seen mobilizing about $700 million of tokens on Wednesday, after moving approximately $2 billion in tokens earlier in the week.

The exchange began returning tokens to clients from a 2014 hack in early July, sparking concerns that token distributions could increase Bitcoin supplies and elevate selling pressure on the cryptocurrency.

It remained unclear just how much Bitcoin Mt Gox holds, although Coindesk estimates suggest the figure is around 46,000 tokens, or $28 billion based on the spot price.

Rate Cut Hopes High After Fed Minutes, but Recession Fears Return

Expectations for a September rate cut increased after the minutes of the Federal Reserve’s late-July meeting indicated policymakers favored lower rates.

Traders were split over a 25 or 50 basis point cut in September, as shown by CME Fedwatch.

Bets on lower rate cuts were further supported by a sharp downward revision in payroll data for the year to March 2024, indicating a much weaker labor market than initially expected.

This reading renewed fears that a cooling labor market will magnify risks of a U.S. recession this year— a scenario that dampens risk sentiment, even with the prospect of lower interest rates. However, lower rates create a positive environment for speculative assets like crypto.

Spot Bitcoin ETF Inflows Continue as ETH Flows Stay Negative

Spot bitcoin exchange-traded funds (ETFs) in the U.S. saw their fifth consecutive day of positive inflows, attracting $39.42 million on Wednesday. In contrast, spot ether ETFs experienced five straight days of net outflows.

Grayscale’s mini bitcoin trust led the way with $14.2 million in net inflows, followed by Bitcoin funds from Fidelity and Bitwise, each bringing in about $10 million, according to SoSoValue data.

BlackRock’s IBIT, the largest spot bitcoin ETF by net assets, recorded $8.35 million in inflows. Franklin Templeton’s EZBC fund saw $3.55 million in inflows, while Invesco’s BTCO added $2.46 million.

The only net outflows came from Grayscale’s converted GBTC fund, which lost $9.82 million. The remaining six funds, including Ark and 21Shares’ ARKB, reported no flows for the day.

Total daily trading volume for the 12 bitcoin ETFs reached $1.42 billion on Wednesday, up from $1.35 billion on Tuesday.

Crypto Price Today: Altcoins Drift Higher in Tandem with Bitcoin

Broader crypto prices rose, tracking gains in Bitcoin and a risk-on environment, although overall gains were still limited.

The No. 2 token, Ether, climbed 1.7% to $2,621.95, while SOL added 1.4%.

MATIC surged more than 13%, while ADA and XRP rose 5.4% and 0.4%, respectively.

Among meme tokens, DOGE climbed 1.6%.

Ambar Warrick contributed to this report.