Investing.com– Bitcoin fell on Wednesday, extending losses from earlier in the week, as investors remained wary of the token over fears that withdrawals from the shuttered Mt Gox exchange would trigger a mass sell-off of the token.

The outlook for the broader cryptocurrency market also remained uncertain amid uncertainty over US interest rates, while the recent decline in the dollar did little to stem the sector’s weakness.

fell 3.3% in the past 24 hours to $60,976.60 by 01:14 ET (05:14 GMT). The world’s largest cryptocurrency had been suffering ponderous losses in June and was trading squarely within a trading range it had set since March.

Bitcoin Sees No Relief as Mt Gox Concerns Rise

Traders have been largely on edge in anticipation of Mt Gox’s distributions. The exchange’s liquidators signaled they would begin returning Bitcoin stolen in the 2014 hack to customers in early July.

Earlier this year, the exchange accumulated about $9 billion worth of bitcoin, though it is unclear what the planned distribution amount will be.

Traders have speculated that token buyers will be largely inclined to sell, given that Bitcoin has seen massive price increases over the past decade. Such a scenario represents prolonged selling pressure on Bitcoin.

Speculation about dumping activities by other entities has also weighed on Bitcoin. The German government was seen selling off Bitcoin recovered from a pirate site, while some whales were also seen mobilising Bitcoin this week.

But even before concerns about Mt Gox began to negatively impact the price of bitcoin, sentiment towards cryptocurrencies had cooled significantly, with the token remaining in a range-bound state for over three months.

Capital flow data has shown that trading volumes in cryptocurrency ETFs, particularly Bitcoin, have fallen dramatically in recent months.

Cryptocurrency Price Today: Rate Concern Keeps Altcoins Low

Cryptocurrency prices fell, gaining little support from the overnight decline in the dollar.

The world’s second-largest token fell 2.8% to $3,360.84, with sentiment towards the token remaining feeble despite reports that a spot Ether ETF could be approved this week.

and moved in a narrow range, similar to meme tokens and .

Cryptocurrencies posted petite gains even as Federal Reserve Chairman Jerome Powell signaled progress in lowering inflation, weighing on the dollar.

But Powell warned that the Fed needs even more confidence before it can start cutting interest rates.

His comments came ahead of the next key guidance on U.S. interest rates. The Fed’s June meeting is scheduled for Wednesday, and several Fed officials are also expected to speak.

In addition to the Federal Reserve data, there will be data releases on Friday.