Singapore, July 5 (Reuters) – Bitcoin slumped to a four-month low on Friday, sinking 5% to
$55,366, its lowest level since February. The cryptocurrency is on track for its worst weekly
performance in a year, down 10% for the week.
Ether, the second-largest cryptocurrency, also plummeted, falling 8% to $2,891, its lowest
level in one and a half months.
The decline is attributed to uncertainty over the US presidential election, with investors
worrying about the potential impact on the cryptocurrency market if Joe Biden is replaced
as the Democratic nominee.
Additionally, reports of Mt. Gox, a defunct cryptocurrency exchange, repaying its creditors
have raised concerns about a potential surge in bitcoin supply, further depressing prices.
The slide marks a significant reversal from bitcoin’s strong start to the year, which saw it
reach a record high of $73,803.25 in mid-March.
The cryptocurrency market is closely watching the developments, with many analysts
predicting further volatility in the coming weeks.
