Markets
Bitcoin hits two-month low, hits $57,000 amid uncertainty over US elections, Mt. Gox outflows
Bitcoin fell to a two-month low on Thursday, losing more than 4% to $57,711, amid uncertainty over the U.S. presidential election and reports of a bitcoin offering from a defunct Tokyo-based cryptocurrency exchange.
Bitcoin fell to its lowest level since May 2 and has lost more than 6% this week.
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 sparked concerns about Biden’s replacement as the nominee.
“BTC dropped to a fresh three-month low below $58,000 before a mini-recovery to just under $60,000. While BTC’s local low sits at $56,700, anything lower would take us to a 5-month low in BTC prices. If it doesn’t recover again, $60,000 could now become resistance,” CoinSwitch Markets Desk said.
Bitcoin had a strong start to the year after the launch of exchange-traded funds in the US, hitting a record high of $73,803.25 in mid-March, thanks to investor inflows. However, the rally has since run out of steam, with Bitcoin down more than 21% from its peak.
Analysts attribute the decline to a politically charged environment, with elections underway in France and Britain causing some risk reduction, as well as a change in dynamics in the U.S. 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 contribute to Bitcoin’s decline if those creditors sell their tokens.
However, Sycamore noted that while this marked a period of consolidation for the cryptocurrency after substantial gains earlier this year, there was potential for it to retest March highs and potentially rise toward $80,000.
“On the other hand, asset management firm Bitwise amended its S-1 filing with the US SEC and is expected to give final approvals on the ETH ETF as early as July. However, this news couldn’t stop ETH from bleeding as it dropped over 3% yesterday,” Coinswitch added.
Meanwhile, Ether, another major cryptocurrency, was trading down more than 1% at $3,213.0, down more than 22% from its mid-March peak.
The price of Ether fell by more than 5.4%, falling below $3,200. At the same time, other major tokens like Binance’s BNB, Solana, and Dogecoin also saw declines of 6.1%, 8.8%, and 7.2%, respectively.
Bitcoin has seen a notable decline of 18.31% over the past 30 days. This decline follows its spike above $73,700 in March, mainly due to regulatory approvals and the launch of Bitcoin cash exchange-traded funds.
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