Bitcoin prices remained largely unchanged on Wednesday evening, staying within a recent trading range as concerns over U.S. inflation and interest rates kept traders cautious towards riskier assets like cryptocurrencies.
Early in the day, Bitcoin saw slight relief after reports indicated that the defunct crypto exchange Mt Gox had clarified it had no immediate plans to sell its substantial Bitcoin holdings, although it was preparing a repayment plan for creditors.
By 10:32 ET (14:32 GMT), Bitcoin stood nearly flat at $67,709.6, maintaining its position within the $60,000 to $70,000 range observed over the past two months.
Mt Gox Moves Bitcoin Holdings but No Immediate Sales Expected
Bitcoin experienced turbulence earlier this week when Mt Gox mobilized approximately $9 billion worth of Bitcoin, leading to speculation that the exchange might offload the tokens to repay creditors. However, subsequent reports confirmed that there were no immediate plans for such sales.
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 potential liquidation remains a concern for Bitcoin traders, as it could create significant selling pressure on the cryptocurrency market.
Altcoins Decline as Rate Hikes Loom
Most major altcoins saw declines on Wednesday, with Ether, the second-largest cryptocurrency, down 2.3% at $3,771.55. Despite this drop, Ether remained close to its two-month peak, supported by progress towards the approval of an ETF that directly tracks the token, along with similar products starting to trade in the UK markets.
Other altcoins also faced downward pressure amid ongoing fears of prolonged high interest rates and persistent inflation. XRP rose by 0.4%, while SOL dropped by 1%. Meme tokens performed better, with SHIB jumping 6% and DOGE adding 1.8%.
Attention this week is focused on the PCE price index data, the Federal Reserve’s preferred inflation gauge, set to be released on Friday. This data is expected to influence the Fed’s interest rate decisions, which could impact the crypto market.
BlackRock’s Bitcoin ETF Surpasses Grayscale’s GBTC
BlackRock’s spot Bitcoin ETF has become the largest of its kind, overtaking Grayscale’s GBTC following a $102 million inflow on Tuesday. As of Wednesday morning, BlackRock’s IBIT holds nearly $20 billion worth of Bitcoin, while Grayscale’s GBTC stands at $19.7 billion after experiencing $105 million in outflows on Tuesday.
Since its launch in January, IBIT has attracted $16.5 billion in investments, while Grayscale has seen $17 billion withdrawn from its fund. On Tuesday, BlackRock integrated the Bitcoin ETF into its income and bond-focused funds, including the Strategic Income Opportunities Fund (BSIIX), which now holds over $3.5 million worth of IBIT, and the Strategic Global Bond Fund (MAWIX), holding $485,000.
The increased activity in IBIT reflects a bullish trend for Bitcoin and the broader cryptocurrency market, driven by the approval of Ether ETFs and renewed support for cryptocurrencies among U.S. political parties.
