Bitcoin price saw a rise on Monday, recovering some recent losses despite overall negative sentiment in the crypto markets. The market was tense over a potential major liquidation event as Mt Gox, a now defunct exchange, is set to distribute stolen tokens starting this week. In addition, anticipation of U.S. interest rate cues from the Federal Reserve and economic data kept market sentiment on edge.
Bitcoin rose over 2% in the past 24 hours to $62,838.9, supported by weakness in the dollar which lost 0.2% on Monday. Mt Gox announced that it will begin distributing Bitcoin stolen during a 2014 hack from early July, leading to speculations that receivers of the stolen tokens may be inclined to sell, potentially causing substantial price losses.
Altcoin prices also rose on Monday, with Ethereum adding 2.6% to $3,475.84. Other tokens like XRP and Litecoin rose between 1.9% and 4.5%, while meme tokens Dogecoin and Shiba Inu climbed over 2% and 1% respectively. However, market sentiment remained cautious ahead of more cues on U.S. interest rates.
On-chain data suggests that Bitcoin could face resistance around the $65,000 level, with short-term holders now facing losses or holding positions in the red. This could lead to selling pressure around the $65,000 mark as speculators may look to exit their positions at breakeven levels. Analysts suggest that Bitcoin may face resistance at this level in the short term.
Overall, the crypto market remains volatile as investors await more clarity on U.S. interest rates and economic data which could impact prices in the coming days.