Bitcoin
Bitcoin hits 2-month low on election uncertainty, Mt Gox inflows
By Sameer Manekar
(Reuters) – Bitcoin fell to a two-month low on Thursday, extending a month-long slide, as uncertainty over the U.S. presidential election and reports of bitcoin supply from a now-defunct Tokyo-based cryptocurrency exchange weighed.
Bitcoin fell more than 2% to $57,843, its lowest since May 2, and has lost more than 6% so far this week.
The world’s largest cryptocurrency has been under pressure in recent months, and its slide accelerated this week after the first debate between US presidential candidates Joe Biden and Donald Trump raised the possibility of Biden being replaced as the nominee.
“If he (Biden) is replaced, and there’s a lot of talk about that, that person may not be pro-crypto,” said Josh Gilbert, market analyst at digital brokerage eToro.
Bitcoin had a strong start to the year following the launch of exchange-traded funds in the US, propelling it to a record high of $73,803.25 in mid-March as investors poured in. However, the rally has fizzled out, with bitcoin losing more than 21% since then.
A politically charged backdrop, with elections underway in France and Britain, is resulting in some risk reduction, analysts said, along with changing odds in the U.S. election campaign.
Analysts also pointed to reports that Mt. Gox, the world’s leading cryptocurrency exchange before its demise in 2014, is paying off its creditors, which could hurt bitcoin if those creditors sell their tokens.
“There is an expectation that some of these original bitcoin buyers will start selling into the market, which is quite a large portion,” said Tony Sycamore, market analyst at IG.
Sycamore added, however, that while this has been a period of consolidation for the cryptocurrency after strong gains earlier this year, it could retest March highs and likely rally to $80,000.
Ether, another major cryptocurrency, was trading down more than 1% at $3,213.0, down more than 22% from its mid-March highs.
(Reporting by Sameer Manekar in Singapore; Additional reporting by Ankur Banerjee in Singapore; Editing by Vidya Ranganathan and Jan Harvey)