Climbs Near $63,000 as Mt Gox, Rate Signals Take Center Stage By Investing.com

Investing.com – Bitcoin prices climbed Monday, recovering some of their recent losses, though sentiment toward the token and broader cryptocurrency markets remained largely negative.

Markets were on edge for a potential major liquidation event, with now-defunct exchange Mt Gox set to begin distributions of stolen tokens starting this week.

Anticipation of further guidance on US interest rates from the Federal Reserve and economic data also kept sentiment elevated.

The token has risen more than 2% over the past 24 hours to $62,838.9 as of 08:59 ET (12:59 GMT). The token has also benefited from support from dollar weakness, with the greenback down about 0.2% on Monday.

Mt Gox Bitcoin Distribution About to Begin

Mt Gox liquidators said they will begin distributing Bitcoins stolen in a 2014 hack starting in early July.

Traders have speculated that recipients of the stolen tokens will be largely inclined to sell, given that Bitcoin has seen a massive increase in valuation over the past decade.

Such an event puts massive selling pressure on Bitcoin and could lead to substantial price losses. The token saw heavy losses in late June due to this idea.

Cryptocurrency investment products also saw two consecutive weeks of capital outflows amid fears of selling pressure on Bitcoin.

Cryptocurrency Prices Today: Altcoins Rise on Rate Fluctuations

Among broader crypto markets, altcoin prices rose on Monday, recouping some of June's steep losses.

The world's No. 2 token added 2.6% to $3,475.84, also supported by speculation that the Securities and Exchange Commission will approve a spot Ether exchange-traded fund as early as this week.

and increased between 1.9% and 4.5%, although trading volumes in all three remained weak.

Meme tokens climbed more than 2% and 1% respectively.

But sentiment toward cryptocurrencies remains tight ahead of a series of fresh clues on U.S. interest rates this week.

Federal Reserve Chairman Jerome Powell is expected to speak on Tuesday, while the Fed's June meeting is expected on Wednesday.

The data is due out on Friday and should also provide more guidance on interest rates.

Traders have increased their bets that the Fed will do so — a notion that has also offered some support to crypto.

Bitcoin Could Face Selling Pressure at $65,000, On-Chain Data Shows

Bitcoin could face resistance around the $65,000 level, on-chain data suggests.

The leading cryptocurrency is attempting to rebound after ending June down 7%, a decline that reversed May's gains, driven largely by miner selling and concerns about ETF inflows being non-directional arbitrage bets rather than outright bullish investments.

The recent drop has pushed the price of Bitcoin below the aggregate base price of short-term holders, meaning wallets that have held Bitcoin for 155 days or less. According to LookIntoBitcoin, that aggregate base price is now $65,000.

On-chain analytics firms use realized price as the basis for overall cost, reflecting the average price at which coins were last moved on-chain.

In practical terms, this means that short-term holders are now facing losses or holding positions in the red, which may lead them to sell at a loss or breakeven, potentially adding selling pressure around the $65,000 mark.

“Bitcoin price has fallen below the aggregate cost of short-term holders for the first time since August 2023. In the near term, we should expect some resistance around the ~$65,000 level as short-term market speculators may look to exit their positions at an ‘equilibrium’ level,” Blockware Intelligence analysts said in a note seen by CoinDesk.

“Last summer when BTC lost the STH RP [realized price] At the support level, the price moved sideways for another two months before finally breaking above the support level again,” they added.