Investing.com-- Bitcoin price fell marginally on Friday and was set for an underwhelming weekly performance as fears of more token distributions by Mt Gox and an unclear regulatory outlook saw crypto markets lag a recovery in stocks.
The world’s biggest cryptocurrency fell 1.2% to $58,201.0 by 08:33 ET (12:33 GMT), remaining squarely within a trading of $50,000 to $60,000 seen through most of the year.
Bitcoin was pressured by a brief rebound in the dollar on Thursday.
Bitcoin lags stock recovery even as sentiment improves
Crypto markets took little support from improving sentiment across risk-driven markets amid easing fears of a U.S. recession and persistent bets on interest rate cuts by the Federal Reserve.
Global stocks marked strong gains this week, with Wall Street indexes surging to two-week highs as increased volatility seen last week now appeared to be clearing.
Strong U.S. retail sales data and softer inflation readings helped inspire confidence in the U.S. economy and spruced up bets on a 25 basis point rate cut in September.
While lower interest rates do bode well for Bitcoin and crypto, the sector was pressured by reports that Mt Gox was planning to mobilize more Bitcoin to return to its clients after a 2014 hack.
A wallet linked to Mt Gox, which holds $2 billion of Bitcoin, was seen initiating test transactions this week, which usually heralds a sale event.
Uncertainty over the U.S. presidential election also factored into caution towards crypto, as Kamala Harris and Donald Trump were seen polling neck-and-neck in the 2024 race. So far, only Trump has presented a pro-crypto stance.
Data earlier this week also showed traders pulling out over $1 billion of USDT from crypto exchanges, potentially heralding a risk-off event.
Bitcoin exchange-traded funds also continued to see sustained outflows this week.
Crypto price today: Altcoins drift lower
Broader crypto markets also tracked weakness in Bitcoin, with sentiment towards the sector showing few signs of improvement.
World no.2 token Ether lost 2.3% to $2,578.18 and was set to lose 1.7% this week- its fourth straight week of losses.
XRP, ADA and SOL moved in a flat-to-low range, while among meme tokens, DOGE slid 3.5%.
NYSE withdraws application to list Bitcoin ETF (TSX:EBIT) options
The New York Stock Exchange (NYSE) has withdrawn its application to list and trade options tied to the Bitwise Bitcoin ETF (NYSE:BITB) and the Grayscale Bitcoin Trust (NYSE:GBTC), as revealed in a Securities and Exchange Commission (SEC) filing.
The SEC had extended its review period several times after opening the NYSE proposal for public comment in February 2024 and formally began proceedings in April. However, the NYSE retracted the proposal before the SEC reached a final decision.
Meanwhile, the Chicago Board Options Exchange (CBOE), which hosts several Bitcoin ETFs, also withdrew its application but has since re-submitted a more comprehensive proposal, according to information noted by Bloomberg's James Seyffart.
The SEC has not issued any public statements or feedback on the matter.
The NYSE announced plans to list index options that track Bitcoin prices in May.