Bitcoin price today: edges higher to $60k amid some rate cut cheer

Investing.com-- Bitcoin price rose on Thursday, tracking a broader increase in risk-driven markets amid growing bets on a September interest rate cut, although speculation over more token distributions by Mt Gox limited overall gains.

Risk appetite was also tempered by data showing a sharp downward revision in U.S. labor data, which ramped up concerns over a potential recession.

Bitcoin rose 2.1% to $60,862.0 by 09:15 ET (13:15 GMT). The token drifted in a tight trading range for most of this week, and struggled to remain above $60,000.

Mt Gox seen mobilizing tokens this week

Wallets associated with defunct crypto exchange Mt Gox were seen mobilizing about $700 million of tokens on Wednesday, after moving about $2 billion tokens earlier in the week.

The exchange had begun returning tokens to clients from a 2014 hack in early-July, sparking concerns that token distributions could present an increase in Bitcoin supplies, and also increase selling pressure on the cryptocurrency.

It remained unclear just how much Bitcoin Mt Gox holds, although Coindesk estimates put the figure at 46,000 tokens, or $28 billion based on the spot price.

Rate cut hopes high after Fed minutes, but recession fears return

Expectations for a September rate cut grew after the minutes of the Federal Reserve’s late-July meeting showed policymakers in favor of lower rates.

Traders were split over a 25 or 50 basis point cut in September, CME Fedwatch showed.

Bets on lower rate cuts were furthered by a sharp downward revision in payrolls data for the year to March 2024, which indicated that the labor market was much weaker than initially expected.

The reading spurred renewed fears that a cooling labor market will increase risks of a U.S. recession this year- a scenario that bodes poorly for risk sentiment, even with the prospect of lower interest rates.

But lower rates present a positive environment for speculative assets such as crypto.

Spot Bitcoin ETF inflows continue as ETH flows stay negative

Spot bitcoin exchange-traded funds (ETFs) in the U.S. saw their fifth consecutive day of positive inflows, attracting $39.42 million on Wednesday. In contrast, spot ether ETFs experienced their fifth straight day of net outflows.

Grayscale’s mini bitcoin trust led the way with $14.2 million in net inflows, followed by spot bitcoin funds from Fidelity and Bitwise, each bringing in about $10 million, according to SoSoValue data.

BlackRock’s IBIT, the largest spot bitcoin ETF by net assets, recorded $8.35 million in inflows. Franklin Templeton’s EZBC fund saw $3.55 million in inflows, while Invesco’s BTCO added $2.46 million.

The only net outflows came from Grayscale’s converted GBTC fund, which lost $9.82 million. The remaining six funds, including Ark and 21Shares’ ARKB, reported no flows for the day.

Total daily trading volume for the 12 bitcoin ETFs reached $1.42 billion on Wednesday, up from $1.35 billion on Tuesday.

Crypto price today: altcoins drift higher in tandem with Bitcoin

Broader crypto prices rose tracking gains in Bitcoin and a broader risk-on environment. But overall gains were still limited.

World. No 2 token Ether climbed 1.7% to $2,621.95, while SOL added 1.4%.

MATIC surged more than 13%, while ADA and XRP rose 5.4% and 0.4%, respectively.

Among meme tokens, DOGE climbed 1.6%.

Ambar Warrick contributed to this report.

This article first appeared in Investing.com