Investing.com– Bitcoin price rose on Wednesday, recovering further from recent losses as bargain hunters took advantage of recent price declines, although sentiment remained negative in the face of increased supply due to Mt Gox and the German government.
World no.2 token Ether also advanced, extending a recent recovery as markets awaited a key decision from the Securities and Exchange Commission on a spot exchange-traded fund.
rose 2.8% in the past 24 hours to $58,870.5 by 01:40 ET (05:40 GMT), briefly crossing $59,000 as it recovered from over four-month lows.
Bitcoin benefits from bargain buying, but selling fears remain
The world’s largest currency benefited chiefly from bargain buying into recent price declines. Bargain hunters were seen stepping into markets since last week, with crypto investment products, such as Bitcoin ETFs, seeing capital inflows on this trend.
But sentiment towards crypto remained largely on edge, especially amid uncertainty of just how many tokens defunct crypto exchange Mt Gox will distribute as part of compensation for a 2014 hack.
Mt Gox was seen mobilizing about $9 billion of Bitcoin earlier this year- representing a sizeable chunk of current supply. A sale at that scale presents steep losses for Bitcoin’s price.
Additionally, the German government was also seen offloading Bitcoin confiscated from a piracy website. Reports said the government held at least $2 billion worth of Bitcoin, and was steadily selling the token in the open market.
Recent weakness in the dollar also offered some relief to Bitcoin, although the greenback steadied this week following testimony from Federal Reserve Chair Jerome Powell, where he gave no clear cues on plans to cut interest rates.
Focus is also on key inflation data, due on Thursday.
Crypto price today: Ether gains on ETF hype, altcoins recover
Broader crypto prices tracked Bitcoin’s recovery.
rose 1.2% to $3,106.66, extending a recent recovery as markets waited on the SEC to approve amended applications from issuers for a spot Ether ETF.
The ETF could be approved by as soon as mid-July, and is expected to attract some measure of institutional capital into the world’s second-largest cryptocurrency.
Among other altcoins, rose 1.9%, also gaining on the prospect of a spot ETF, while and rose 0.9% and 2.6%, respectively.
Among memecoins, rose 3.9%, while added 0.9%.