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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 a former Tokyo-based cryptocurrency exchange running out of Bitcoin.
Bitcoin fell to its lowest level since May 2 and has lost more than 6 percent 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 raised concerns about Biden’s replacement as the nominee.
“BTC has fallen to a fresh 3-month low below $58k before a mini recovery to just below $60k. While BTC’s local low is $56.7k, anything lower would take us to a 5-month low in BTC prices. If it doesn’t recover again, $60k 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 United States, hitting a record high of $73,803.25 in mid-March as investors flocked to it. However, the rally has since fizzled out, with Bitcoin down more than 21% from its peak.
Analysts attribute the decline to a politically charged environment, with ongoing elections in France and Britain prompting some risk-off, 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 contribute 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 a retest of the March highs and a potential move towards $80,000.
“On the other hand, asset management firm Bitwise has amended its S-1 filing with the US SEC, which is expected to give final approvals on the ETH ETF as early as July. However, this news failed to stop ETH from bleeding, as it fell by more than 3% yesterday,” Coinswitch further added.
Meanwhile, Ether, another major cryptocurrency, traded slightly lower by more than 1% to $3,213.0, down more than 22% from its mid-March peak.
Ether’s price dropped by more than 5.4 percent, falling below $3,200. At the same time, other major tokens such as Binance’s BNB, Solana, and Dogecoin saw drops 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 decline follows a spike above $73,700 in March, which was primarily driven by regulatory approvals and the launch of spot Bitcoin exchange-traded funds.
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