Bitcoin price rose on Thursday, tracking a broader increase in risk-driven markets amid growing bets on a September interest rate cut, although speculation over more token distributions by Mt Gox limited overall gains.
Risk appetite was also tempered by data showing a sharp downward revision in U.S. labor data, which ramped up concerns over a potential recession.
Bitcoin rose 2.4% to 60,751.8 by 00:50 ET (04:50 GMT). The token drifted in a tight trading range for most of this week, and struggled to remain above $60,000.
Mt Gox seen mobilizing tokens this week
Wallets associated with defunct crypto exchange Mt Gox were seen mobilizing about $700 million of tokens on Wednesday, after moving about $2 billion tokens earlier in the week.
The exchange had begun returning tokens to clients from a 2014 hack in early-July, sparking concerns that token distributions could present an increase in Bitcoin supplies, and also increase selling pressure on the cryptocurrency.
It remained unclear just how much Bitcoin Mt Gox holds, although Coindesk estimates put the figure at 46,000 tokens, or $28 billion based on the spot price.
Rate cut hopes high after Fed minutes, but recession fears return
Expectations for a September rate cut grew after the minutes of the Federal Reserve’s late-July meeting showed policymakers in favor of lower rates.
Traders were split over a 25 or 50 basis point cut in September, CME Fedwatch showed.
Bets on lower rate cuts were furthered by a sharp downward revision in payrolls data for the year to March 2024, which indicated that the labor market was much weaker than initially expected.
The reading spurred renewed fears that a cooling labor market will increase risks of a U.S. recession this year- a scenario that bodes poorly for risk sentiment, even with the prospect of lower interest rates.
But lower rates present a positive environment for speculative assets such as crypto.
Crypto price today: altcoins drift higher in tandem with Bitcoin
Broader crypto prices rose tracking gains in Bitcoin and a broader risk-on environment. But overall gains were still limited.
World. No 2 token Ether rose 1.1% to $2,622.35, while SOL fell 0.5%.
MATIC surged more than 13%, while ADA and XRP rose 2.8% and 0.3%, respectively.
Among meme tokens, DOGE rose 1.2%.
