Bitcoin prices fell on Thursday amid renewed concerns about cryptocurrency dividends by MT Jux, and capital outflows from major exchanges reinforced a sense of risk aversion.
Fears of further selling pressure have largely offset positive signals on inflation and interest rates in the US, and the bitcoin and cryptocurrency markets have seen a rally in the broader risk-based cryptocurrency markets.
Read also:List of the 10 largest whales that own Bitcoin globally
Bitcoin was down nearly 4.2% to $58,338.8 by 12:10 Riyadh time.
Mount Jukes fears back into focus after deal test
Fears of selling pressure caused by cryptocurrency dividends by stalled cryptocurrency exchange MT Jux returned to focus this week, after a exchange-linked portfolio holding $2 billion worth of bitcoin was seen conducting demo transactions this week. The move could herald a new round of token distributions by the exchange, after it began returning bitcoin stolen during a 2014 hack to customers in July.
While it is unclear what will happen after the Bitcoin distributions by Mount Jux, traders were concerned that the distributions would lead to more selling pressure on the world’s largest cryptocurrency.
MT Jux was seen mobilizing around $9 billion in bitcoin earlier this year.
USDT outflows could portend further price weakness – Intudablock says
Digital asset research firm EntoTheBlock said on Wednesday that about a billion dollars of USDT stablecoin was withdrawn from cryptocurrency exchanges this week.
Huge outflows from USDT have foreshadowed the weakening price of Bitcoin in recent months, with the move likely to indicate that traders have been withdrawing money from exchanges in preparation for a risk-off event.
Crypto Prices Today: Alternative Cryptocurrencies Fall as CPI Data Offers Little Support
Broader cryptocurrency prices fell on Thursday, lagging behind a rally in other risky assets, as fears of Mount Jux dividends and withdrawal of coins from the exchange weighed on.
Weaker-than-expected inflation data on the CPI website did not contribute to a slight rise in crypto prices, even as broader risk-based markets, especially equities, rose on the back of the prospect of lower interest rates.
But given that the CPI is still seeing a month-on-month increase, traders have been seen in a position to prepare for a lower rate cut by the Federal Reserve in September. This idea has limited the breadth of risk traffic.
The world’s No. 2 token Ether fell 3.1% to $2,638.30, while SOL, XRP and ADA fell more than 1% each.
Among memes, DOGE fell by 3.4%.
What stock should you buy in your next trade?
The computing forces of artificial intelligence are changing the stock market. ProPicks from Investing.com are 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks’ AI identified two stocks that jumped more than 150%, 4 more that jumped more than 30%, and another 3 stocks that jumped more than 25%.
