Bitcoin
Bitcoin hits two-month low, hits $57,000 amid US election uncertainty, Mt. Gox outflows
Bitcoin fell to a two-month low on Thursday, falling more than 4% to $57,711 amid uncertainty over the U.S. presidential election and reports of bitcoin supply from a now-defunct Tokyo-based cryptocurrency exchange.
Bitcoin has fallen to its lowest level since May 2 and has lost more than 6% this week.
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The world’s largest cryptocurrency has been under pressure in recent months after the first debate between US presidential candidates Joe Biden and Donald Trump raised concerns about Biden’s replacement as the candidate.
“BTC dropped to a new three-month low below $58K before a mini recovery back to just under $60K. While BTC’s local low is at $56.7K, anything lower would take us to a 5-month low in BTC prices. If not reclaimed again, $60K could now become resistance,” CoinSwitch Markets Desk said.
Bitcoin had a strong start to the year following the launch of exchange-traded funds in the US, reaching a record high of $73,803.25 in mid-March as investors flocked to it. However, the rally has since fizzled out, with Bitcoin losing more than 21% from its peak.
Analysts attribute this decline to a politically charged environment, with ongoing elections in France and Britain causing some risk reduction, along with changing dynamics in the US election campaign.
Additionally, reports that Mt. Gox, once the world’s leading cryptocurrency exchange before its collapse in 2014, is paying off its creditors could be contributing to Bitcoin’s decline if those creditors are selling their tokens.
However, Sycamore noted that while this marked a period of consolidation for the cryptocurrency following substantial gains earlier this year, there was potential for it to retest March highs and potentially rally to $80,000.
“On the other hand, asset management firm Bitwise amended its S-1 filing with the US SEC, expecting to give final approvals for its ETH ETF as early as July. However, this news failed to stop ETH from bleeding as it fell by over 3% yesterday,” Coinswitch added.
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Meanwhile, Ether, another significant cryptocurrency, was trading just over 1% lower at $3,213.0, down more than 22% from its peak in mid-March.
Ether’s price dropped by over 5.4 percent, falling below $3,200. At the same time, other prominent tokens like Binance’s BNB, Solana, and Dogecoin also experienced declines of 6.1 percent, 8.8 percent, and 7.2 percent, respectively.
Bitcoin has seen a notable decline of 18.31 percent over the past 30 days. This drop follows its peak above $73,700 in March, driven primarily by regulatory approvals and the launch of spot Bitcoin exchange-traded funds.