Bitcoin Surpasses $57K as Market Factors in Mt. Gox Sales
Bitcoin made a significant recovery, bouncing back from a 4% loss during Asian trading to reclaim the $57,000 level in the European morning hours on Monday, as major cryptocurrencies surged by up to 3%.
The focus in the market has shifted from the discussions around Mt. Gox’s repayments to the policies of the U.S. Federal Reserve. Traders are closely watching upcoming economic data releases and anticipating Federal Reserve Chair Jerome Powell’s testimony later in the week.
Ether rose above $3,000 after slipping below that level on Friday. Cardano’s ADA led the gains with a 3.3% increase over the past 24 hours. Other cryptocurrencies like Solana’s SOL, BNB Chain’s BNB, and dogecoin (DOGE) also saw gains of at least 1%.
Among tokens with market capitalization between $1 billion and $5 billion, Celestia’s TIA experienced the most significant increase, surging by 15% ahead of its flagship Modular Summit conference set for Thursday.
The CoinDesk 20, an index of the largest tokens, saw a slight uptick, reversing a 7% loss from earlier in the day.
Bitcoin traders have refocused their attention on U.S. Federal Reserve speeches and policies, with the market having largely factored in the impact of Mt. Gox’s repayments.
Last week, BTC experienced a sharp decline, dropping over 8% within a few hours on Friday, falling to as low as $53,600 following Mt. Gox’s movement of millions worth of the token to the bitBank exchange in Japan. However, the exchange’s trading desk expects minimal market impact from Mt. Gox’s wallet movements moving forward.
Yuya Hasegawa, a crypto market analyst at bitBank, noted the market’s reaction to Mt. Gox’s repayment announcement, which led to a brief recovery to $58,000 over the weekend.
The market’s focus is gradually shifting away from concerns about Mt. Gox’s repayments and back to the Federal Reserve’s policy decisions, particularly with the upcoming U.S. Consumer Price Index (CPI) report on Thursday and Federal Reserve Chair Jerome Powell’s congressional testimony.
Some market observers anticipate subdued price action to persist, attributing it to the summer holiday season. Philippe Bekhazi, CEO of digital asset services firm XBTO, highlighted the current imbalance between sellers and buyers, noting reduced activity due to holidays, mining operations shutting down, and long-term holders adjusting their positions.
Bekhazi also pointed out that the current market behavior aligns with typical patterns following a bitcoin halving event, emphasizing the recurring seasonality observed in bitcoin market cycles.
