Bitcoin price remained relatively flat on Friday, as traders anxiously awaited a major distribution by the defunct exchange Mt Gox. The sentiment towards the broader crypto market was also tense ahead of a key U.S. inflation reading that could impact interest rates. Despite a 0.1% increase over the past 24 hours, Bitcoin was facing the possibility of further price weakness due to the looming Mt Gox distributions.
The fear of Mt Gox liquidation persisted, as distributions of stolen tokens from the exchange in 2014 were set to begin in early July. Traders speculated that clients receiving these tokens at a higher value would likely sell them, potentially causing a massive sale event for Bitcoin and driving prices down substantially. As a result, Bitcoin was on track for a nearly 9% decline in June, highlighting the impact of the impending Mt Gox distributions on the cryptocurrency market.
While Bitcoin struggled, other cryptocurrencies like Ether and altcoins saw mild gains. Ether rose 0.1% after reports that the SEC could approve a spot Ether exchange-traded fund (ETF) soon. Despite these gains, Ether and other altcoins were still nursing losses through June, partly due to the strength of the dollar and anticipation of the U.S. inflation data. The upcoming launch of spot Ether ETFs in the U.S. could potentially boost Ether’s value significantly, with forecasts predicting a potential rise to $6,500 later this year.