Stays Below $63K Amid Mt. Gox Fears and Rate Jitters

Bitcoin’s price saw minimal movement on Tuesday as the market remained cautious, influenced by the impending distribution of tokens from the now-defunct Mt. Gox exchange and key interest rate signals.

Recent data indicated that digital assets experienced outflows for the third consecutive week, although there were signs of improving sentiment following significant outflows in June.

As of 08:28 ET, Bitcoin rose by 0.1% over the previous 24 hours, reaching $62,736.2. After suffering substantial losses throughout June, Bitcoin has continued to trade within a range of $60,000 to $70,000, which has characterized much of the second quarter.

### Bitcoin Price Under Pressure from Mt. Gox Distributions

Market sentiment surrounding Bitcoin has shown only slight improvement, partly due to the announcement from Mt. Gox’s management regarding the distribution of Bitcoin stolen during a hack in 2014, set to begin in early July. The exchange is working to return these tokens to affected clients.

Earlier this year, Mt. Gox was reported to be mobilizing approximately $9 billion worth of Bitcoin, but specifics on the amount to be distributed remain unclear. Traders worry that those receiving Bitcoin might be more likely to sell, given the token’s significant increase in value over the past decade. This potential selling pressure could further impact Bitcoin prices.

### Altcoin Performance Cautious Amid Interest Rate Anxiety

In the broader cryptocurrency market, altcoin prices were stable as traders approached with caution ahead of critical indicators regarding U.S. interest rates.

While some altcoins saw modest gains, a few meme tokens experienced slight declines. Market attention was directed towards a significant speech scheduled later in the day. Following that, key economic data on interest rates is expected on Wednesday, with additional important numbers set to be released on Friday.

Although expectations have risen for a potential interest rate cut by the Federal Reserve in September, traders have largely favored the dollar, limiting support for cryptocurrencies.

### July May Bring Relief for Bitcoin Amid ETF Inflows

There is potential optimism for Bitcoin in the upcoming weeks, as historical trends suggest that July can be a favorable month for the cryptocurrency after a period of declines.

On July 1, U.S.-listed ETFs recorded an inflow of nearly $130 million, the highest since early June, following significant outflows. Historical data indicates that Bitcoin has averaged a return of 9.6% in July, often recovering strongly after a negative June.

In a recent analysis, a financial firm noted that Bitcoin has achieved average July gains of over 11% in the past decade, with positive returns in 7 out of 10 years. A separate report highlighted that returns in July from 2019 to 2022 were substantial.

Data from a digital asset manager also revealed that the outflows from crypto investment products have slowed significantly as of July 1. However, trading volumes remain low, reflecting decreased retail interest in cryptocurrencies. Ether-related products experienced the largest outflows during the week, even amid speculation that a spot Ether ETF might receive approval shortly.