Bitcoin Surges Over $57K as Mt. Gox Sales are ‘Priced In’

Bitcoin has rebounded from a 4% loss, surpassing the $57,000 mark, while Ether has climbed back over $3,000.

Shifting Market Focus

The market’s attention is transitioning from Mt. Gox’s repayments to U.S. Federal Reserve policies. Traders are closely watching upcoming economic data releases and Fed Chair Jerome Powell’s testimony later this week.

Bitcoin recovered from a 4% loss during the Asian trading session to reclaim $57,000 in European morning hours on Monday, with some major cryptocurrencies rising by as much as 3%. Ether (ETH) regained the $3,000 level after briefly dipping below it on Friday. Cardano (ADA) led the gains with a 3.3% increase over the past 24 hours, while Solana (SOL), BNB Chain (BNB), and Dogecoin (DOGE) also posted gains of at least 1%.

Celestia’s TIA token jumped 15%, leading gains among tokens with a market capitalization between $1 billion and $5 billion, ahead of its flagship Modular Summit conference scheduled for Thursday.

Market Sentiment and Federal Reserve Focus

Bitcoin traders are now turning their attention back to U.S. Federal Reserve speeches and policies, as the market has largely priced in the impact of Mt. Gox’s repayments. Bitcoin experienced one of its steepest declines last week, dropping more than 8% in a few hours on Friday, reaching a low of $53,600. This drop occurred shortly after Mt. Gox started transferring millions worth of Bitcoin to the Japan-based bitBank exchange.

Despite this, bitBank’s trading desk expects a reduced market impact from Mt. Gox’s wallet movements going forward. “Bitcoin was already fluctuating around $54,000 by the time Mt. Gox’s trustee officially announced the repayment,” said Yuya Hasegawa, crypto market analyst at bitBank. “The price bounced back after the announcement and briefly recovered to $58,000 over the weekend.”

Hasegawa added, “The market had overly priced in the repayment before it actually started, and later reacted to the U.S. jobs report on Friday, which was announced after the beginning of Mt. Gox’s repayment. This suggests that the market’s concern for Mt. Gox’s repayment is starting to wane, and their focus is shifting back to the Fed’s policy decisions.”

Upcoming Economic Indicators

The latest U.S. Consumer Price Index (CPI) report is due on Thursday. Additionally, Federal Reserve Chair Jerome Powell will testify before Congress on Tuesday and Wednesday, potentially providing insights into the central bank’s plans regarding monetary policy in the coming months.

Market Outlook

Some market observers expect subdued price action to continue, citing the summer holiday period. “It’s a case of more summer blues for investors,” said Philippe Bekhazi, CEO and co-founder of digital asset services firm XBTO. “Sellers are more motivated than buyers right now. Many people are on holiday, some small miners are shutting down, and long-term holders are trimming their positions.”

Bekhazi added, “However, this pattern is not really different from what we typically see following the months after a bitcoin halving event,” referring to the seasonality often observed in bitcoin market cycles.