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rises towards $63K with Mt Gox, price signals in images By Investing.com

rises towards K with Mt Gox, price signals in images By Investing.com

Investing.com– Bitcoin’s price rose Monday, recovering somewhat from recent losses. However, sentiment toward the token and the broader crypto market remained largely negative.

Markets were on edge over a possible major liquidation as now-defunct exchange Mt Gox was set to begin distributing stolen tokens from this week.

Expectations of more signals on US interest rates, from the Federal Reserve and economic data, also kept sentiment tense.

rose over 2% over the past 24 hours to $62,838.9 at 08:59 ET (12:59 GMT). The token also received some support from dollar weakness, with the greenback losing around 0.2% on Monday.

Mt Gox Bitcoin Distribution Is About to Begin

Mt Gox liquidators have announced that they will begin distributing Bitcoins stolen in a hack in 2014 from early July.

Traders speculated that recipients of the stolen tokens will be largely inclined to sell, as Bitcoin has seen a massive spike in appreciation over the past decade.

Such an event will create a huge selling pressure on Bitcoin and could lead to significant price losses. The token saw steep losses at this point in late June.

Crypto investment products also recorded two consecutive weeks of outflows on fears of selling pressure on Bitcoin.

Crypto Price Today: Altcoins Surge as Price Jitters Come into Play

Across the broader crypto markets, altcoin prices rose on Monday, recouping some of June’s steep losses.

The world’s No. 2 token rose 2.6% to $3,475.84, also drawing support from speculation that the Securities and Exchange Commission will approve a spot Ether exchange-traded fund as early as this week.

and rose between 1.9% and 4.5%, although trading volumes were small in all three.

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

But sentiment towards crypto still remained tense before further clues about US interest rates emerged this week.

Federal Reserve Chairman Jerome Powell is scheduled to speak on Tuesday, with the Fed’s June meeting taking place on Wednesday.

The data is due on Friday and is also expected to provide more clues about interest rates.

Traders were seen raising their bets on whatever the Fed would do – a notion that also provided some support to crypto.

Bitcoin could face selling pressure of $65,000 per on-chain data

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

The leading cryptocurrency is attempting to recover after ending June with a 7% drop, erasing May’s gains, largely due to miner selling and concerns over ETF inflows as non-directional arbitrage bets rather than outright bullish investments.

The recent decline has pushed Bitcoin prices below the total cost basis of short-term holders: wallets that have held BTC for 155 days or less. According to LookIntoBitcoin, that total cost basis now stands at $65,000.

On-chain analytics companies use the realized price as the basis for total cost, which reflects the average price at which coins last moved on-chain.

In practice, this means that short-term holders will now face losses or take positions in the red, which could lead to them selling at a loss or breaking even, potentially increasing selling pressure around $65,000.

“The price of Bitcoin has fallen below the total 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 on a break -even’ level,” Blockware Intelligence analysts said in a note seen by CoinDesk.

“When BTC lost the STH RP (realized price) support level last summer, the price moved sideways for another two months before finally breaking out again,” they added.