Photo by Bitcoin Rebounds to $57,000 After Billions in Mt. Gox Refunds Fueled Selloff
Bitcoin experienced a slight rebound on Monday morning, increasing by 0.29% and trading at around $57,000. The top cryptocurrency had dropped to $55,000 on Friday as the now-defunct crypto exchange Mt. Gox began repaying its creditors in Bitcoin worth billions of dollars, leading to a massive sell-off by the creditors.
Bitcoin rebounds to $57,000
Tokyo-based Mt. Gox, formerly the world’s largest Bitcoin exchange, is supposed to return more than 140,000 Bitcoin—worth $9 billion—to victims of a 2014 hack. The exchange declared bankruptcy that year, owing creditors 45 billion yen ($414 million). Creditors have been waiting for the repayment of their holdings ever since.
The German government is also selling Bitcoin
Amid massive selloff, the German government has been unloading hundreds of millions of dollars worth of Bitcoin—potentially impacting Bitcoin’s price. The sales are being conducted by the country’s Federal Criminal Police Office, known locally as the Bundeskriminalamt, or BKA.
German government sells Bitcoin
The BKA is selling Bitcoin confiscated from a now-defunct movie piracy website, according to on-chain data tracked by blockchain analysis firm Arkham Intelligence. Last week, the government sold an additional 3,000 Bitcoin, valued at approximately $172 million.
On Monday, German police sold an additional 2,739 Bitcoins, equivalent to $155 million worth of the cryptocurrency.
The government has been transferring its cryptocurrency reserves to major exchanges like Coinbase, Bitstamp, and Kraken.
Spot Bitcoin ETFs see inflows
The recovery of Bitcoin is also attributed to the increase in inflows of spot Bitcoin ETFs on Friday, following two consecutive days of outflows. According to the Bitcoin ETF tracker Farside, spot Bitcoin ETFs saw over $143 million in inflows on Friday, with Fidelity’s FBTC receiving the most at $117 million.
Spot Bitcoin ETFs see inflows
With the recent recovery, Bitcoin’s focus is now shifting to the economic data and inflation report, which is due on Thursday. As cryptocurrency is becoming more integrated with macroeconomics, the data will have a significant impact on the entire crypto market.
Markets have priced in Mt. Gox’s ongoing repayments and U.S. policies could now start influencing the market, one trading desk said.
Bitcoin climbs over $57K
The market is shifting focus from Mt. Gox’s repayments to U.S. Federal Reserve policies, with traders eyeing economic data releases and Fed Chair Jerome Powell’s testimony later this week.
Bitcoin reversed a 4% loss from the Asian trading session to regain the $57,000 mark in European morning hours Monday as some majors rose as much as 3%. Ether jumped back over $3,000 after losing the level on Friday, while Cardano’s ADA led gains with a 3.3% rise over the past 24 hours. Solana’s SOL, BNB Chain’s BNB, and dogecoin DOGE were up at least 1%.
Celestia’s TIA led gains among tokens with a market capitalization between $1 billion and $5 billion, jumping 15% ahead of its flagship Modular Summit conference scheduled for Thursday.
The broad-based CoinDesk 20, an index of the largest tokens, edged higher, reversing a 7% loss from earlier in the day.
Here Are My Top 3 Crypto Investments to Buy Hand Over Fist Before the Market Picks Up
If you haven’t noticed, the crypto market has been going through a bit of a challenging stretch over the last couple months. After seemingly only going up to start off 2024, it is now struggling to sustain much if any momentum.
However, as history has shown, these corrections are healthy and common in bull markets, and in most scenarios, they provide investors with a valuable opportunity. Here are three crypto investments I am buying on the dip.
- Bitcoin
Nothing much needs to be said here. In many ways, Bitcoin is the quintessential cryptocurrency. While it isn’t as alluring as investing in a new coin with supposed hype and potential, Bitcoin’s principle characteristics have stood the test of time more so than any other cryptocurrency, making it the safest crypto investment today and one that will likely continue to be so for decades to come.
Bitcoin
- Ethereum
Bitcoin takes the crown in many ways when it comes to being the epitome of a cryptocurrency, but Ethereum is a close second. In addition, Ethereum has something Bitcoin doesn’t—smart contracts. Launched in 2015, these smart contracts give developers the unique ability to build innovative blockchain-based applications.
Ethereum
- Coinbase
Coinbase isn’t a cryptocurrency, but there is no other asset on the market that provides investors with such comprehensive exposure to the vastness of crypto. In other words, by investing in Coinbase, you can eliminate the hassle of combing through the thousands of cryptocurrencies.
Coinbase
As crypto adoption grows, Coinbase is positioned to become the go-to platform for institutional and retail investors looking to explore the power of digital assets. While not immune to the volatility of crypto (its stock has receded in tandem), the recent dip in Coinbase could be seen as a great proxy to gain broad crypto exposure.
