Bitcoin Price Holds Steady Amid Caution Over U.S. Inflation and Interest Rates

The price of Bitcoin saw a slight increase on Wednesday, remaining within a recent trading range as concerns over U.S inflation and interest rates kept traders cautious towards risk-driven assets like cryptocurrency. However, the world’s largest cryptocurrency received some relief after reports indicated that Mt Gox, a bankrupt crypto exchange, clarified that it had no immediate plans to sell its massive Bitcoin holdings.

Bitcoin rose 1.5% over the past 24 hours to $68,826.3, staying within a range of $60,000 to $70,000 that has been observed over the past two months. The market was initially spooked by Mt Gox moving around $9 billion worth of Bitcoin this week, leading to speculation that the exchange was preparing to sell the tokens to repay creditors. However, former Mt Gox CEO Mark Karpeles stated that the tokens were likely being moved in preparation for distribution, with no imminent sale planned.

In the broader cryptocurrency market, altcoins also saw slight gains, with Ethereum up 0.8% at $3,864.29. The token has been trading close to two-month highs, following progress towards the approval of an exchange-traded fund that tracks Ethereum directly. Other altcoins experienced modest increases, although concerns over high interest rates and inflation continue to limit gains.

Investors are closely watching upcoming inflation data, which will impact the Federal Reserve’s decisions on interest rates. Several Fed officials have indicated that rates will remain high for an extended period, which could negatively affect the crypto market. Despite these challenges, altcoins like Dogecoin and Shiba Inu saw notable gains, reflecting ongoing interest in the cryptocurrency space.