Bitcoin Price Update

Bitcoin price fell on Monday, extending a sell-off seen over the weekend as sentiment towards crypto markets remained frail following a deep rout over the past month.

Crypto saw some relief towards the end of last week, tracking a rebound in broader financial markets as investors bet that fears of a U.S. recession were overblown.

However, this notion ran out of steam over the weekend, with crypto tokens experiencing extended selling in the past two days.

Bitcoin fell 1.3% to $59,830.0 by 09:17 ET (13:17 GMT). Trading volumes were also somewhat muted due to a Japanese market holiday.

Bitcoin Rangebound after Sliding to $49k

The world’s biggest cryptocurrency was rangebound between $50,000 and $60,000 over the past week, after sinking as low as $49,000 earlier. Sentiment towards risk-driven markets remained strained, particularly in anticipation of key U.S. inflation data on Wednesday, which is expected to offer more cues on the Federal Reserve’s plans for interest rate cuts.

While stock markets saw some recovery in recent sessions, with Asian shares advancing on Monday, crypto lagged behind this rebound, given the more speculative nature of the market.

Some resilience in the dollar also weighed, with the greenback experiencing inflows as traders positioned for Wednesday’s inflation reading. Analysts predict the reading will show inflation cooled further in July, giving the Fed more confidence to begin cutting interest rates.

Crypto Price Today: Altcoins Flat, XRP Rally Fades

Broader crypto markets saw mixed, mostly flat performance on Monday, as Bitcoin’s selling weighed on risk sentiment.

World no.2 token Ether added 2.4% to $2,688.56.

XRP rose marginally to $0.57, steadying after a strong rally last week. The XRP issuer, Ripple Labs, was ordered to pay a fraction of the penalties sought by the Securities and Exchange Commission for illegal securities sales. However, the case still did not provide regulatory clarity on whether crypto tokens are considered securities.

Among other altcoins, ADA and SOL slid 1% and 1.2%, respectively. Memetokens SHIB and DOGE traded relatively flat.

Tether Calls Celsius’s $2.4bn Lawsuit a ‘Shakedown’

In other crypto developments, USDT issuer Tether has strongly pushed back against a lawsuit filed by Celsius Network, dismissing it as a “shakedown” and “baseless.”

The suit, filed on August 9 in the U.S. Bankruptcy Court for the Southern District of New York, seeks to recover approximately $2.4 billion in Bitcoin that Celsius claims was improperly liquidated by Tether before the crypto lender’s bankruptcy over two years ago.

Tether asserted it acted according to a 2022 agreement, which required Celsius to provide additional Bitcoin as collateral when prices dropped. Tether stated that when Celsius failed to meet these requirements, it was instructed to liquidate the Bitcoin to cover an $815 million debt.

“This lawsuit seeks to improperly impose the costs of Celsius’ mismanagement on Tether,” said the stablecoin issuer. Tether added that the liquidation was done “at Celsius’ direction and with Celsius’ consent.”

Tether also criticized the lawsuit’s legal basis, describing it as an “obvious misapplication of the law” and raised jurisdiction concerns. It reassured investors of its financial stability, noting it had $12 billion in consolidated equity as of June 30, 2024.

Celsius, which filed for Chapter 11 bankruptcy in July 2022, argues that Tether did not give the agreed-upon 10-hour timeframe to meet the final collateral demand, proceeding with an improper liquidation of 39,542.42 Bitcoin. The $2.4 billion claim reflects Bitcoin’s current value.