Bitcoin prices edged up slightly on Wednesday but remained confined within a recent trading range as traders continued to exercise caution over U.S. inflation and interest rates, avoiding risk-driven assets like cryptocurrencies.
The world’s largest cryptocurrency found some relief after reports suggested that the now-defunct crypto exchange Mt. Gox clarified it had no immediate plans to sell its substantial Bitcoin holdings, even as it prepares to repay creditors.
As of 01:00 ET (05:00 GMT), Bitcoin rose 1.5% over the past 24 hours, reaching $68,826.3. Despite this increase, the token stayed within the $60,000 to $70,000 range it has occupied for the past two months.
Mt. Gox Clarifies Intentions Amid Bitcoin Movement
Bitcoin experienced volatility earlier this week when Mt. Gox, which went bankrupt in 2014, moved about $9 billion worth of Bitcoin. This movement sparked speculation that the exchange was preparing to sell the tokens to repay creditors and account holders.
However, subsequent reports indicated that Mt. Gox does not plan to immediately offload any Bitcoin. Former Mt. Gox CEO Mark Karpeles stated that the movement of Bitcoin was likely the trustees preparing for eventual distribution rather than an imminent sale.
Mt. Gox’s handling of its large Bitcoin holdings remains a significant concern for traders, as liquidating these assets could exert substantial selling pressure on the market.
Altcoins Show Modest Gains Amid Market Caution
Most major altcoins also experienced slight increases on Wednesday. Ethereum, the second-largest cryptocurrency, rose 0.8% to $3,864.29, maintaining its proximity to two-month highs. This strength follows progress by the Securities and Exchange Commission towards approving an exchange-traded fund that directly tracks Ethereum. Additionally, similar products have begun trading in UK markets.
Other altcoins saw modest gains amid ongoing concerns over persistent inflation and the potential for prolonged high interest rates. XRP increased by 0.8%, SOL by 3.6%, while meme tokens like SHIB surged nearly 17% and DOGE added 2.6%.
Focus on Upcoming PCE Price Index Data
The market’s attention is firmly on the upcoming Personal Consumption Expenditures (PCE) price index data, which is the Federal Reserve’s preferred measure of inflation. Scheduled for release on Friday, this data is expected to influence the Fed’s future plans for interest rates.
Recent statements from Federal Reserve officials have underscored that interest rates are likely to remain high for an extended period—a scenario that generally poses challenges for the cryptocurrency market.
