Bitcoin price remained steady on Friday as investors exercised caution in anticipation of U.S. interest rate signals from Federal Reserve Chair Jerome Powell’s upcoming address.
A general risk-off sentiment in financial markets put pressure on the cryptocurrency, with additional concerns stemming from potential token distributions by the defunct exchange Mt Gox.
Bitcoin inched up by 0.2% to $60,846.8 by 01:56 ET (05:56 GMT).
The crypto markets were also on edge due to a significant rise in the Japanese yen, following warnings from the Bank of Japan Governor about potential further interest rate hikes.
Bitcoin had faced a recent slump, dropping as low as $49,000 earlier in August, due to unwinding carry trades and overall market volatility.
Bitcoin’s Performance Hinges on Mt Gox and Powell Speech
Bitcoin’s weekly performance was lackluster, with the token struggling to sustain breaks above $60,000 amidst lingering concerns related to Mt Gox.
Reports of nearly $3 billion worth of tokens being mobilized by wallets associated with Mt Gox raised fears of more distributions, fueling worries of a potential mass sell-off event in Bitcoin.
In addition to Mt Gox caution, the overall risk-off sentiment in financial markets, as evidenced by lower Wall Street indexes, added to the pressure on Bitcoin.
Investors were awaiting Powell’s speech at the Jackson Hole Symposium for insights on interest rates and economic conditions, with expectations of a rate cut in September.
Weak labor market data earlier in the week suggested the possibility of a deeper rate cut, but also raised concerns about the impact of a weakening labor market on economic growth.
Crypto Market Today: Altcoins Rise, But Weekly Performance Mixed
While broader cryptocurrency prices saw gains on Friday, the overall weekly performance was lackluster as the rebound from early-August losses faded.
The second-largest token, Ethereum, rose by 1.8% to $2,674.99, while other altcoins like Ripple and Litecoin also posted gains between 0.9% and 2.1%. However, Dogecoin lagged behind, falling by 0.1%.
Among memecoins, Shiba Inu rose by 1.2%.
In summary, Bitcoin’s price stability is being influenced by caution surrounding Mt Gox token distributions and anticipation of Jerome Powell’s speech on U.S. interest rates. The broader crypto market is experiencing mixed performance, with altcoins showing some gains but still facing challenges in maintaining momentum. Investors should monitor these factors closely to make informed decisions about their investments in the cryptocurrency space.