Bitcoin Price Decline Amid Concerns

Bitcoin price declined on Thursday due to renewed worries over token distributions by Mt Gox and capital outflows from major exchanges, exacerbating risk-off sentiment.

Fears of selling pressure offset positive signals on U.S. inflation and interest rates, leaving Bitcoin and crypto markets trailing behind broader risk-driven assets.

Bitcoin dipped 3.7% to $58,812.20 by 09:07 ET (13:07 GMT).

Mt Gox Fears Back in Focus

Concerns regarding selling pressure linked to Mt Gox resurfaced as a wallet associated with the exchange, holding $2 billion in Bitcoin, conducted test transactions. This development hints at potential new token distributions following the restoration of some Bitcoin stolen during a 2014 hack, which began in July.

While the volume of Bitcoin to be distributed by Mt Gox remains uncertain, traders are anxious about increased selling pressure affecting the major cryptocurrency. Earlier this year, Mt Gox had approximately $9 billion in Bitcoin mobilized.

USDT Outflows Could Indicate More Price Weakness

Digital assets research firm IntoTheBlock reported on Wednesday that nearly $1 billion in the stablecoin USDT was withdrawn from crypto exchanges this week. High USDT outflows have commonly preceded price weakness in Bitcoin, suggesting that traders may be pulling funds off exchanges in anticipation of a risk-off event.

Crypto Prices Today: Altcoins Dip Despite CPI Data

Cryptocurrency prices tumbled on Thursday, lagging behind broader asset rallies amid fears related to Mt Gox distributions and exchange withdrawals. Weaker-than-expected consumer price index data failed to buoy crypto prices, despite a rally in stocks driven by lower interest rate expectations.

However, with CPI still indicating a month-on-month increase, traders positioned for a smaller interest rate cut by the Federal Reserve in September, limiting the impact of the risk-on rally.

Ethereum, the second-largest token, declined 3.6% to $2,639.04, while SOL, XRP, and ADA fell between 1.6% and 4.5%. Meme token DOGE dropped 2.5%.

Binance Returns to India After January Ban

Binance, the world’s largest crypto exchange by trading volume, has registered as a “reporting entity” with India’s Financial Intelligence Unit (FIU), allowing it to resume operations in India after a January ban.

The company announced that its website and app are accessible again for Indian users, emphasizing its commitment to adhering to anti-money laundering standards in India and other jurisdictions.

Binance’s return comes after Indian regulators banned nine crypto websites, including Binance, over concerns regarding illegal operations. In June, the FIU penalized Binance with a fine of 188.2 million Indian Rupees ($2.25 million) for breaching regulations under the Prevention of Money Laundering Act, directing stricter compliance moving forward.