Bitcoin at critical threshold: Uncertainties grow in crypto
While crypto assets are affected by fluctuations in global markets, expectations regarding the interest rate policies of the US Federal Reserve (Fed) are particularly closely monitored by investors.
Bitcoin, although buoyed by rising expectations of a rate cut, is facing selling pressure due to regulatory uncertainty in the US and the mobilization of a large amount of ‘dormant’ Bitcoin.
In light of these developments, the leading crypto asset is trying to maintain its stability above $ 60,000. However, it is still far from the peak of $ 74,000 reached in March.
MARKET DEVELOPMENTS ARE BEING MONITORED
Bitcoin gained traction this week as expectations for a U.S. interest rate cut rose and risk sentiment improved. However, uncertainty over the regulatory outlook for crypto assets in the U.S. weighed on Bitcoin to the downside.
According to the note from CoinTR Research Department's data provider Glassnode analysts, it was stated that despite the uncertainty in the market, large wallet owners tended to save. This somewhat relieved the market, which was experiencing fear of selling.
Another development that affected Bitcoin was the recent transfer of $2 billion worth of Bitcoin by the crypto exchange Mt. Gox, which collapsed years ago. The exchange, which went bankrupt in 2014, reported that it transferred $2 billion worth of Bitcoin to a new address.
Selling pressure on Bitcoin was expected to increase after the exchange returned assets stolen from customers during a 2014 hack.
LATEST SITUATION IN THE CRYPTO MARKET
With these developments, Bitcoin rose by 4.5 percent to $61,285 as of 13:30 today, compensating for the major losses recorded in the market rout last week.
However, the leading crypto asset is still far from its peak of $74,000 reached in March, with the price even falling below $50,000 a few weeks ago.
Ethereum, which ranks second in terms of market value, also gained nearly 5 percent in the last 24 hours, rising to $3,507.