The Bitcoin price experienced a moderate increase on Thursday, consistent with a broader surge in risk-driven markets fueled by mounting expectations of a September interest rate cut. However, concerns regarding additional token distributions by Mt Gox have tempered the overall gains of the cryptocurrency.

At 00:50 ET (04:50 GMT), Bitcoin had risen by 2.4% to $60,751.8, following a period of relatively stagnant trading. Despite its steady performance this week, the cryptocurrency has struggled to maintain a value above $60,000.

One significant factor impacting market sentiment was the movement of approximately $700 million worth of tokens associated with the defunct crypto exchange Mt Gox on Wednesday, following a larger movement of around $2 billion earlier in the week. With the exchange already in the process of returning tokens to clients following a 2014 hack, the prospect of increased Bitcoin supplies has raised concerns over heightened selling pressure and its potential impact on the cryptocurrency’s price.

The exact amount of Bitcoin held by Mt Gox remains ambiguous, with estimates from Coindesk suggesting it could be as much as 46,000 tokens, equivalent to $28 billion based on the current spot price.

Furthermore, anticipation for a rate cut in September gained traction after the release of the minutes from the Federal Reserve’s late-July meeting, which revealed a preference among policymakers for lower interest rates. Traders are divided between the likelihood of a 25 or 50 basis point cut, as indicated by CME Fedwatch. The prospect of reduced rates was reinforced by a significant downward revision in payrolls data for the period up to March 2024, signaling a weaker labor market than initially anticipated and reigniting concerns of a potential U.S. recession this year.

While a recession would undermine risk sentiment, the idea of lower interest rates presents a favorable environment for speculative assets such as crypto. Consequently, the broader crypto market experienced an upturn in line with Bitcoin’s performance, although the overall gains were modest.

The second-largest token, Ether, rose by 1.1% to $2,622.35, while SOL experienced a 0.5% decline. Notably, MATIC surged by more than 13%, while ADA and XRP witnessed respective increases of 2.8% and 0.3%. Among meme tokens, DOGE also made a modest gain of 1.2%.

In conclusion, while Bitcoin’s ascent in the midst of market uncertainties is a positive sign, the implications of the potential increase in token distributions by Mt Gox and the ongoing speculation surrounding the September rate cut are important factors to monitor in the coming days.

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