Bitcoin prices rose on Wednesday, recovering further from recent losses as bargain hunters took advantage of the recent price drop, although sentiment remained negative in the face of increased supply due to Mt Gox and the German government.
The world's no.2 token, Ether, also rallied, extending its recent recovery as the market awaits a key decision from the Securities and Exchange Commission on exchange-traded funds.
Bitcoin rose 2.8% in the last 24 hours to $58,870.5 as of 12:40 WIB, briefly passing $59,000 as it recovered from lows in more than four months.
Bitcoin benefits from cheap buying, but fears of a sell-off remain
The world's largest currency benefited mainly from bargain buying in the recent price decline. Bargain hunters have been seen entering the market since last week, with crypto investment products, such as Bitcoin ETFs, seeing capital inflows on this trend.
But sentiment towards crypto remains largely on edge, especially amid uncertainty over how many tokens defunct crypto exchange Mt Gox will distribute as part of compensation for a 2014 hack.
Mt Gox was seen mobilizing around $9 billion in Bitcoin earlier this year - representing the bulk of the current supply. Selling on that scale would cause huge losses to the price of Bitcoin.
Apart from that, the German government was also seen releasing Bitcoins confiscated from piracy sites. Reports say that the government holds at least $2 billion in Bitcoin, and continues to sell the tokens on the open market.
The dollar's recent weakness also provided some relief to Bitcoin, although the greenback steadied this week after testimony from Federal Reserve Chairman Jerome Powell, in which he gave no clear signal about plans to lower interest rates.
Focus is also on key inflation data on the consumer price index due to be released on Thursday.
Crypto prices today: Ether gains on ETF hype, altcoins recover
Broader crypto prices follow Bitcoin's recovery.
Ether rose 1.2% to $3,106.66, extending its recent recovery as the market waited for the SEC to approve the issuer's amended application for an Ether spot ETF.
The ETF could be approved as early as mid-July, and is expected to attract some institutional capital into the world's second-largest cryptocurrency.
Among other altcoins, Solana rose 1.9%, also gaining on spot ETF prospects, while XRP and Cardano rose 0.9% and 2.6%, respectively.
Among memecoins, SHIB rose 3.9%, while Dogecoin added 0.9%.
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