Bitcoin price drops to $57,000, reaching lowest point in two months amidst US election uncertainty and Mt. Gox withdrawals
Bitcoin saw a sharp decline, hitting a two-month low on Thursday, as it dropped over 4% to $57,711 amidst uncertainties surrounding the U.S. presidential elections and reports of bitcoin supply from a defunct Tokyo-based crypto exchange. This drop marked Bitcoin’s lowest level since May 2, with a total loss of more than 6% for the week.
The world’s largest cryptocurrency has faced pressure in recent months, particularly after concerns arose about the U.S. presidential candidacy following the first debate between candidates Joe Biden and Donald Trump. CoinSwitch Markets Desk noted, “BTC crashed to a new three-month low of under 58k USD before a mini recovery back to just under 60k USD. While the local low of BTC stands at 56.7k USD, anything lower would take us to a 5-month low in BTC prices. If not recovered again, 60k USD may now become a resistance.”
Bitcoin had a strong start to the year with the launch of exchange-traded funds in the U.S., reaching a record high of $73,803.25 in mid-March. However, the rally has since subsided, with Bitcoin experiencing a decline of over 21% from its peak. Analysts attribute this decline to the politically charged environment, with elections in France and Britain leading to some risk reduction, alongside shifting dynamics in the U.S. election campaign.
Furthermore, reports of Mt. Gox, once a leading cryptocurrency exchange before its collapse in 2014, repaying its creditors may be contributing to Bitcoin’s decline if these creditors are selling off their tokens. Despite this period of consolidation for Bitcoin after significant gains earlier in the year, there is potential for it to retest the March highs and potentially rise towards $80,000, as noted by Sycamore.
Meanwhile, Ether, another significant cryptocurrency, was trading slightly over 1% lower at $3,213.0, down more than 22% from its peak in mid-March. Ether’s price saw a decline of over 5.4%, falling below $3,200. Other prominent tokens like Binance’s BNB, Solana, and Dogecoin also experienced decreases of 6.1%, 8.8%, and 7.2%, respectively.
Bitcoin has witnessed a significant decline of 18.31% over the past 30 days, following its peak above $73,700 in March, primarily driven by regulatory approvals and the launch of spot Bitcoin exchange-traded funds. Coinswitch added, “On the other hand, asset management firm Bitwise has amended its S-1 registration with the US SEC expected to give the final approvals on the ETH ETF as early as July. However, this news could not stop ETH from bleeding as it fell by more than 3% yesterday.”
