Bitcoin price gains from CPI last only one hour due to lingering fears of Mt. Gox sell-off

Bitcoin Price CPI Gains Last Just 1 Hour as Mt. Gox Sell-Off Fears Linger

• A clutch CPI beat fails to buoy heavy crypto markets for long, with Bitcoin gaining then losing $1,000 within an hour.

Bitcoin (BTC) spiked to new one-week highs on July 11 as United States macroeconomic data delivered a bullish surprise. Data from Cointelegraph Markets Pro and TradingView showed a rapid but brief BTC price climb to $59,516 on Bitstamp.

This followed the June print of the US Consumer Price Index (CPI), which showed inflation slowing beyond expectations. Year-on-year and month-on-month CPI both came in 0.1% lower than forecast, leading to a positive reaction across both crypto and US stock markets.

Nonetheless, the initial gains proved short-lived, with BTC/USD quickly erasing the $1,000 it had initially added. Inflation coming down faster than expected. Local higher high for Bitcoin in response,” popular trader Jelle summarized on X (formerly Twitter). “Time to let the dust settle, but safe to say it’s much stronger than it was at the start of the month. Reclaim $60,000 and things will look much better.

Bitcoin Short-Term Holder Realized Price

Short-term holders, the name given to the more speculative end of the Bitcoin investor cohort, held up to 2.8 million BTC at a loss when price hit four-month lows of $53,500 last week.

BTC Price Sentiment Beholden to Mt. Gox Pressure

The mood overall meanwhile remained cautious, as markets anticipated the start of distribution of coins belonging to creditors of defunct exchange Mt. Gox. Crypto commentator Zen suggested that a BTC price “nuke” could still result as funds hit exchanges, with two days required for the market to rebalance itself.

That view also held beyond trading circles, with Jamie Coutts, chief crypto analyst at financial services firm Real Vision, arguing that it would ultimately be a cathartic process. “While painful in the short term, the distributions of the Mt.Gox reserve and government sales remove the annoying supply overhang, helping distribute coins to a wider array of holders, thereby growing the network and leaving Bitcoin even better off than before,” he wrote on X on July 10.

Coutts referenced ongoing BTC sales from the German government, which Cointelegraph continues to report on.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.