New record for Bitcoin not reached because of Mt Gox and the ECB
Last Updated on 29 May 2024 by CryptoTips.eu
Bitcoin briefly rose above $70,000 on both Monday and Tuesday/ Many analysts were convinced that we would soon see a new record. However, various factors in the market pushed the best-known digital currency down since yesterday afternoon.
First came the news that long-term Bitcoin HODLers would finally be getting repaid through the Mt Gox platform.
Mt Gox transferring a casual $6.3bn #Bitcoin
— Charlie (@btc_charlie) May 28, 2024
Let the games begin. pic.twitter.com/2k4iDI3pQT
Secondly, the broader financial markets are not sure whether the ECB will announce a first interest rate cut next week. The messages about this are rather mixed, and uncertainty is what traders dislike.
Mt Gox
On Tuesday it was reported that some 100,00 Bitcoin, worth almost $7.3 billion had moved from the former crypto platform Mt. Gox to an unknown wallet.
This means that the repayment to Mt Gox creditors (which must take place before the end of October this year) has finally begun. More and more transactions will probably get reported in the next few days, increasing investor concerns and putting major pressure on the Bitcoin price.
ECB
Secondly, there are signals that the ECB is planning an interest rate cut at its next meeting on June 6, but that news has not yet been officially confirmed by the cabinet of Christine Lagarde.
BREAKING: 🇪🇺 European Central Bank to cut interest rates in June.
— Bitcoin News (@BitcoinNewsCom) May 27, 2024
“What we see right now is enough to remove the maximum level of restriction, equal to 4%.
Data over the coming months will help us determine the pace of further easing,” says ECB chief economist Philip Lane. pic.twitter.com/H4Ee2MGE8d
Philip Lane, the chief economist of the ECB, gave an interview to the Financial Times earlier this week, in which he admitted that inflation levels in the EU zone are indeed heading in the right direction. We will have to wait another week for a real decision on a possible interest rate cut though.
To clarify, a rate cut by the ECB puts pressure on the Federal Reserve to do the same, which would be very good news for tech stocks and also Bitcoin, both of which are considered risky investments.
