Bitcoin Rallies While Market Awaits Key Events

Bitcoin Recovers Slightly Amid Market Jitters
Bitcoin prices saw a modest recovery on Monday, climbing over 2% to $62,838.9 by 08:59 ET (12:59 GMT). Despite this uptick, market sentiment remains wary due to several looming factors. The anticipated distribution of Bitcoin from the defunct exchange Mt Gox, which was hacked in 2014, is causing anxiety among traders. Many expect recipients of these tokens to sell, potentially exerting significant selling pressure on Bitcoin, which already experienced notable declines in late June.
Additionally, the broader crypto market is on edge ahead of crucial U.S. economic updates. The Federal Reserve Chair Jerome Powell is scheduled to speak on Tuesday, with the minutes of the Fed’s June meeting and key employment data due later in the week. Traders are speculating on potential interest rate changes, which has kept overall sentiment cautious.
In related news, altcoins also saw gains, with Ethereum rising 2.6% to $3,475.84 amid rumors of a possible SEC approval for a spot Ether ETF. Other altcoins, including Solana, Cardano, and Polkadot, rose between 1.9% and 4.5%, though trading volumes remained low.
On-chain data suggests Bitcoin may face resistance around the $65,000 level. The cryptocurrency ended June with a 7% decline, pushing its price below the aggregate cost basis of short-term holders, who may now be inclined to sell at breakeven levels. Analysts predict some resistance around $65,000, which could lead to sideways trading in the short term.
Overall, while Bitcoin and other cryptocurrencies have shown some recovery, the market remains cautious ahead of significant economic announcements and potential large-scale Bitcoin liquidations.