Investing.com – Bitcoin price fell slightly on Friday and is expected to post a mediocre weekly performance as fears of another token distribution by Mt. Gox and unclear regulatory outlook caused crypto markets to lag behind the recovery in equity prices.
The price fell 0.1% to $58,238.5 by 01:46 ET (05:46 GMT) and is expected to gain around 1% this week. However, the token has remained squarely within a trading range of $50,000-$60,000 for most of the year.
Bitcoin was pressured by a brief recovery in the dollar on Thursday.
Bitcoin lags behind stock market recovery even as sentiment improves
Crypto markets barely benefited from the improved sentiment in risk-on markets amid easing recession fears in the US and continued bets on interest rate cuts by the US Federal Reserve.
Global equity markets posted strong gains this week, with Wall Street indices rising to two-week highs as the heightened volatility seen last week appears to be easing.
Strong US retail data and lower inflation rates boosted confidence in the US economy and fueled speculation about a 25 basis point interest rate cut in September.
While lower interest rates bode well for Bitcoin and cryptocurrencies, the sector has been pressured by reports that Mt Gox was planning to mobilize more Bitcoin to return to its customers following a 2014 hack.
A wallet linked to Mt Gox containing $2 billion worth of bitcoins was observed initiating test transactions this week, which usually heralds a sell event.
Uncertainty surrounding the US presidential election also contributed to caution towards cryptocurrencies, with Kamala Harris and Donald Trump neck and neck in the polls for the 2024 race. So far, only Trump has taken a pro-crypto stance.
Data from earlier this week also showed that traders withdrew over 1 billion USDT from crypto exchanges, potentially a harbinger of risk aversion.
Bitcoin exchange-traded funds also continued to experience outflows this week.
Crypto price today: Altcoins are falling
The broader crypto markets also tracked Bitcoin’s weakness, with sentiment towards the sector showing little sign of improvement.
The world’s No. 2 token fell 1.4% to $2,600.94 and is set to lose 0.4% this week – its fourth consecutive week of losses.
and moved in a flat to low range, while the meme tokens fell by 0.9%.
