Bitcoin and Altcoins Resilience in Market, Focus on Federal Reserve and Mt. Gox Repayments

Bitcoin and Altcoins Showing Resilience

Bitcoin managed to reverse a 4% loss during the Asian trading session to climb back above the $57,000 mark in the European morning hours on Monday. This positive momentum was also reflected in some major altcoins, with Ether (ETH) bouncing back over $3,000 after briefly dropping below this level on Friday. Notably, Cardano (ADA) led the gains with a 3.3% increase over the past 24 hours. Solana (SOL), Binance Coin (BNB), and Dogecoin (DOGE) also saw gains of at least 1%.

Celestia’s TIA stood out among tokens with a market capitalization between $1 billion and $5 billion, surging 15% ahead of its upcoming Modular Summit conference scheduled for Thursday. The broad-based CoinDesk 20 index, which tracks the largest tokens, made a recovery by reversing a 7% loss seen earlier in the day.

Market Focus Shifts to Federal Reserve and Mt. Gox Repayments

Bitcoin traders are now closely monitoring U.S. Federal Reserve speeches and policies as the market has largely factored in the impact of the ongoing Mt. Gox repayments. Last week, Bitcoin experienced one of its sharpest declines with an over 8% drop in just a few hours on Friday, falling to as low as $53,600. This decline coincided with Mt. Gox moving a substantial amount of Bitcoin to the bitBank exchange in Japan.

However, bitBank’s trading desk noted that they anticipate a lesser market impact from Mt. Gox’s wallet movements going forward. Yuya Hasegawa, a crypto market analyst at bitBank, highlighted that the market had already factored in the repayment before its commencement and then reacted to the U.S. jobs report released on Friday.

Market Outlook and Summer Trends

Looking ahead, the market is awaiting the latest U.S. Consumer Price Index (CPI) report scheduled for Thursday and Federal Reserve Chair Jerome Powell’s testimony to Congress on Tuesday and Wednesday. Despite the recent positive movements, some analysts foresee a continuation of subdued price action, attributing it to the summer holiday period.

Philippe Bekhazi, CEO and co-founder of digital asset services firm XBTO, shared insights, mentioning that sellers currently appear more active than buyers. He noted that the seasonal trend of subdued activity during the summer months is not uncommon in the crypto market, especially post-bitcoin halving events.