Bitcoin
unchanged at $61K amid Mt Gox, macro jitters By Investing.com
Investing.com — The price of Bitcoin held steady on Friday, taking a break from last month’s sharp losses, as expectations of a large distribution by defunct exchange Mt Gox kept traders nervous about the possibility of a larger price weakness.
Sentiment towards broader cryptocurrency markets was also tense ahead of a key US inflation reading due on Friday, which is likely to influence the interest rate outlook.
rose 0.1% in the past 24 hours to $61,367.0 as of 8:58 a.m. ET (12:58 p.m. GMT).
Mt Gox Liquidation Fears Persist, Bitcoin Heads for Losses in June
Distributions of stolen tokens from the Mt Gox exchange in 2014 have remained a major point of concern for Bitcoin. The exchange’s liquidators have said that the distributions will begin in early July and will see stolen Bitcoin and tokens returned to customers.
Given that the tokens will be worth substantially more than when they were stolen, traders speculated that the recipients would likely sell their tokens, representing a major sell-off event for Bitcoin, which could potentially drive prices down substantially.
This notion weighed heavily on Bitcoin prices throughout the week and put the world’s largest cryptocurrency on track for a nearly 9% drop in June.
Cryptocurrency price today: Ether also stable, altcoins rise
Broader cryptocurrency prices rose but still suffered losses in June.
World not. Token 2 rose 0.1%, boosted by reports that the Securities and Exchange Commission could approve an Ether exchange-traded fund (ETF) as early as next week.
But the token was also trading down nearly 9% in June.
and rose between 1.1% and 3.5%, and there were also nursing losses through June. Altcoin trading volumes were also limited.
Among meme tokens, they rose 3.3% and 1%, respectively.
The strength of the dollar, which hit a two-month high, pressured cryptocurrency prices, with investors turning to the greenback ahead of data released later on Friday.
The reading is the Federal Reserve’s preferred inflation gauge and will likely be related to the interest rate outlook.
The prospect of high interest rates for longer periods was a key drag on cryptocurrency prices through June, as the sector typically thrives in a low-rate and highly speculative environment.
Ether Price Could Hit $6,500 This Year Amid ETF Inflows
The cryptocurrency market is overly pessimistic about the upcoming launch of a spot ether ETF in the US, with net inflows potentially reaching $20 billion in the first year, according to a report from Steno Research on Thursday.
The report noted that ETH’s appeal to Wall Street could generate significant investment.
“We continue to forecast net inflows of between $15 billion and $20 billion in the first 12 months, even considering the exit from the Grayscale Trust (ETHE),” Steno analysts said in a note seen by CoinDesk.
They added that this inflow should increase the value of Ether both in dollar terms and relative to Bitcoin.
Steno Research predicts that ether could reach at least $6,500 later this year, driven by these expected flows into spot ETFs and other positive factors.
Spot Ether ETFs are set to begin trading in the US after the SEC approved issuer registrations last month. Negotiations could begin as early as next week, pending approval of S-1 filings.
Steno Research estimates that if projected spot ether ETF inflows materialize, the ether/bitcoin ratio could strengthen to 0.065 by the end of this year.
“Lower inflows into ether ETFs compared to bitcoin ETFs will have a greater impact on ether due to its smaller market capitalization and substantially poorer liquidity,” the report said, adding that inflows into spot ETFs from ETH are more likely to exceed expectations than fall short.