Bitcoin fell to a two-month low on Thursday. The cryptocurrency extended its month-long fall. Uncertainty over the US elections weighed on Bitcoin. Reports of Bitcoin supply from a defunct exchange also affected it.
Bitcoin dropped over 2% to $57,843. This marked its lowest since May 2. Bitcoin lost more than 6% this week.
The world’s biggest cryptocurrency faced pressure in recent months. Its decline sped up this week. The first debate between Joe Biden and Donald Trump raised concerns. There is talk that Biden might get replaced as a candidate.
“If Biden gets replaced, the new person may not support crypto,” said Josh Gilbert, a market analyst at eToro.
Bitcoin had a strong start to the year. The launch of exchange-traded funds in the US helped it. It reached a record $73,803.25 in mid-March. Investors poured in, pushing prices up. However, the rally ended. Bitcoin lost over 21% since then.
A politically charged backdrop adds to the pressure. Ongoing elections in France and Britain are causing some risk reduction. Changing odds in the US election also affect Bitcoin.
Reports suggest Mt. Gox, a defunct exchange, repays its creditors. This might drag Bitcoin lower if creditors sell their tokens. “Some of the original buyers may start to sell, which is a big chunk,” said Tony Sycamore, a market analyst at IG.
Sycamore noted this is a consolidation period for Bitcoin. After strong gains earlier this year, it could retest March highs. It might push up towards $80,000.
Ether, another major cryptocurrency, also fell. It traded over 1% lower at $3,213. Ether is down over 22% from its mid-March highs.
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