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- Bitcoin drops below $59K, facing oversupply risks from Mt. Gox creditors.
- FOMC minutes could further impact BTC price as investors brace for recession signals.
- BTC ETFs witness spikes amid recession fears.
Bitcoin fell to $59K and fast, pulling the rest of the market with it. The bears seem to be having none of it. The crypto market has retraced in the last hour, resulting in over $100 million in liquidations and wiping out almost all of the gains from earlier today.
BTC fell 0.74% to $59,067 after a 1.74% spike the day before. It reached an early high of $61,405 before falling to a low of $58,636. Overall, the crypto market cap decreased by 0.56% to $2.05 trillion.
At the time of writing, Bitcoin (BTC) is worth $59,321.03, down 0.1% from an hour ago and 2.2% from yesterday. The value of Bitcoin today is 2.7% lower than it was 7 days ago. The rest of the crypto market is facing corrections ahead of the FOMC minutes.
On Tuesday, Arkham Intelligence reported the transfer of 13,265 BTC worth $784.20 million to two wallets. The transfers were most likely related to the return of BTC to creditors, which might increase BTC supply.
Mt. Gox’s total BTC holdings remained at 46,164 BTC ($2.72 billion) hence, the recipient wallets are most likely theirs.
Bitcoin could lose support after FOMC Minutes
Inflows into the US BTC-spot ETF market have decreased the effect of the Mt. Gox transfers. According to Farside Investors, Grayscale Bitcoin Trust (GBTC) saw a net outflow of $12.8 million.
Bitwise Bitcoin ETF (BITB) saw net outflows of $6.5 million, while ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $51.9 million.
Excluding flow statistics for iShares Bitcoin ETF (IBIT) and Invesco Galaxy Bitcoin ETF (BTCO), the US BTC-spot ETF market experienced net inflows of $32.6 million. On Monday, the spot ETF market saw net inflows of $62.1 million, extending its net inflow run to three sessions.
Investor expectations for multiple Fed rate cuts in 2024 and a gentle landing for the US economy are likely to have driven demand for spot ETFs.
The FOMC Meeting Minutes, set to be released on Wednesday, August 21, may impact buyer demand for Bitcoin. Investors might become alarmed as the Fed’s concerns about the US job market and economic prospects grow. The increased prospect of a US recession (hard landing) may impact US BTC-spot inflows and demand.
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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Florence Muchai
Florence has been covering for the past 6 years crypto, gaming, tech, and AI news. Her Computer Studies at Meru University of Science and Technology and Disaster Management and International Diplomacy at MMUST amply equip her with language, observation and technical skills. Florence has worked at VAP Group and as an editor for several crypto media houses.
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