SINGAPORE (Reuters) – Bitcoin fell to a four-month low on Friday and was on track for its worst weekly performance in a year, hurt by uncertainty over whether Joe Biden will remain the Democrats’ U.S. presidential nominee and concerns about possible increases in the exchange rate. encryption provision.
Bitcoin prices fell 5% to $55,366, the lowest since late February on Friday, and are down 10% for the week. Ether fell 8% to $2,891, a month and a half low.
Bitcoin had a strong start to the year following the launch of exchange-traded funds in the US, propelling it to a record high of $73,803.25 in mid-March. However, bitcoin has lost more than 21% since then.
Investors are also concerned that Biden could be replaced as the Democrats’ presidential nominee by someone less pro-crypto, market participants said, following his poor performance in the first debate against Donald Trump.
Analysts have also pointed to reports that Mt. Gox, the world’s leading cryptocurrency exchange before it went defunct in 2014, is repaying its creditors. This has sparked concerns that Bitcoin will likely face even more downward pressure if these lenders dump their tokens.
(Reporting by Ankur Banerjee in Singapore; Editing by Edwina Gibbs)
