Investing.com– Bitcoin rose on Friday as markets reacted to Federal Reserve Chairman Jerome Powell’s speech at a symposium in Jackson Hole.
A broader risk aversion movement in financial markets weighed on cryptocurrencies, while bitcoin was further weakened by concerns about more token distributions through the shuttered Mt Gox exchange.
rose 2.4% to $61,773.0 at 12:57 ET (17:57 GMT).
Earlier in the day, cryptocurrency markets were left somewhat unsettled by a piercing rise in value after Bank of Japan Governor Kazuo Ueda warned that interest rates could rise even further.
Yen strength dissolved the carry trade earlier in August, hitting most risk-on markets. Bitcoin also fell to $49,000.
Bitcoin Suppressed by Mt Gox Warning, Powell’s Speech Gives Boost
Bitcoin price predicted average weekly results, with the token’s value at times surpassing $60,000 amid continuing concerns about Mt Gox.
This week, wallets linked to the exchange have accumulated nearly $3 billion worth of tokens, presaging further payouts.
The exchange began returning tokens stolen in a 2014 hack to customers in early July, a distribution that raised concerns about a mass sell-off of Bitcoin amid the increased token supply.
The performance was also affected by a risk aversion in broader financial markets, which prompted Wall Street indexes to end Thursday’s session in the red.
Markets were a bit cautious ahead of the Jackson Hole Symposium on Friday. However, comments from Fed Chairman Powell, who said, “It’s time to adjust policy,” sent Bitcoin and other cryptocurrencies higher on Friday.
According to , investors are generally pricing in a rate cut in September, but are divided on whether the cut will be 25 or 50 basis points.
The case for a deeper rate cut was strengthened by delicate jobs data released earlier this week, although the reading also raised concerns that a weakening job market would weigh on economic growth.
Cryptocurrency Price Today: Altcoins Rising, But Average Week Looks Likely
Cryptocurrency prices rose on Friday but headed for a moderate weekly performance as the rebound from early August losses fizzled out.
The world’s second-largest token rose 2.77% to $2,678.07, while altcoins rose 0.1% to 3.5% and were up about 0.5%.
Among memcoins, growth was 4.6%.
Unmined Bitcoin Tokens Worth $74 Billion, JPMorgan Says
At current Bitcoin prices, the value of the 1.3 million tokens remaining to be mined is estimated at about $74 billion, according to a JPMorgan research report published on Friday.
The bank adjusted its price targets for several mining stocks it covers, reflecting second-quarter earnings and recent changes in both Bitcoin price and network hashrate. Hashrate measures the total computing power used to mine and validate transactions on a proof-of-work blockchain.
JPMorgan lowered its target price CleanSpark (NASDAQ:) from $12.50 to $10.50, while maintaining a Neutral rating on the stock. The price target for Iren was also lowered from $11 to $9.50, but the Overweight rating was retained. The price target for Marathon Digital (NASDAQ:) was lowered from $14 to $12, with an Underweight rating, and the price target for Riot Platforms (NASDAQ:) was lowered from $12 to $9.50, although the stock is still rated Overweight.
The report estimates that potential block reward revenue will be around $37 billion over the next four years, down 19% from the beginning of June but up 85% from a year earlier.
JPMorgan favors Iren and Riot, noting that the stocks’ recent delicate performance could be a buying opportunity for investors. Riot in particular has lagged the sector year to date due to “operational issues,” but the bank sees improving sentiment and potential share price gains in the coming months as efficiency and production metrics improve.
Ambar Warrick contributed to this article.
