Bitcoin faced a reversal on Thursday, retreating from recent gains amidst renewed concerns over token distributions linked to the defunct crypto exchange Mt Gox.
After a significant rebound from near four-month lows, Bitcoin fell by 1.3% over the past 24 hours to $64,818.4 by 01:52 ET (05:52 GMT).
The persistent worries stem from reports that wallets associated with Mt Gox have been mobilizing $2.8 billion worth of tokens earlier this week. The exchange, which suffered a major hack in 2014, announced plans to return stolen tokens to creditors starting in July, although the total amount remains uncertain.
Investor anxiety revolves around the potential influx of Bitcoin into the market, which could heighten selling pressure and push prices lower. This concern had previously contributed to sharp declines in Bitcoin through early July, bringing the token close to levels that could trigger miner capitulation.
Despite recent speculation bolstered by expectations of a supportive regulatory environment under a possible second Trump presidency, Bitcoin’s rally has been tempered by these supply-side fears.
Other major cryptocurrencies also saw retracements in their recent gains, with Ether dropping 2.2% to $3,423.02 and XRP sliding 3.3% following rumors related to a settlement between Ripple and the Securities and Exchange Commission.
While altcoins like ADA and SOL moved within a narrow range, meme tokens like SHIB and DOGE also registered declines, signaling a cooling off in the broader crypto market’s rebound rally.
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