Bitcoin Slides to Two-Month Low, Hits $57,000 Level Amid US Election Uncertainty, Fed Policy Stems Mt. Gox Outflows

Bitcoin dropped to a two-month low on Thursday, falling over 4 percent to $57,711 amid uncertainty over the U.S. presidential elections and reports of bitcoin supply from a defunct Tokyo-based crypto exchange. The world’s largest cryptocurrency has lost more than 6 percent this week, reaching its lowest since May 2. Additionally, the impact of fed policy stems has added to the market volatility, causing further concerns among investors.

Political and Market Influences Due to Fed Policy Stems

The current decline in Bitcoin, as captured by the latest crypto news, suggests an influence on political activities. The ongoing elections influenced the political atmosphere in France and Britain. Talks of risk reduction have been noted in the crypto update, and as the dynamics shift in the U.S election campaign, a general shift has been noticed in the broader crypto market. The first debate between U.S. presidential candidates Joe Biden and Donald Trump sparks talks about Biden being replaced as a candidate. The uncertainty surrounding fed policy stems also contributes to the unease in the cryptocurrency markets.

CoinSwitch Markets Desk notes, “BTC crashed to a new three-month low of under $58,000 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 become a resistance,”. The ongoing debate about fed policy stems from the market’s bearish sentiment.

Market Trends and Reactions

Peak and Subsequent Decline

A crypto update mentioned that Bitcoin (BTC) and Ethereum (ETH) have had a strong start in the U.S market. This is because many exchange-traded funds were launched in the U.S the following year. Bitcoin (BTC) hit a high record of $73,803.25 in mid-March as investors became bullish. The massive support has declined, resulting in a loss of over 21% from its peak. In the latest crypto news, experts suggest that the uncertainty surrounding fed policy stems is one of the factors contributing to this decline.

Impact of Mt. Gox Repayments

Reports from a recent crypto update show that Mt. Gox, once a top cryptocurrency exchange before its collapse in 2014, repays its creditors and may contribute to Bitcoin’s decline if those creditors sell off their tokens. Additionally, market reactions to fed policy stems are causing fluctuations in cryptocurrency prices. The market sits on the verge of unpredictability as many factors tend to cripple a full comeback. 

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Analyst Perspectives

Sycamore suggested that although this marked a comeback for the cryptocurrency following significant gains earlier this year, it could retest the March highs and rise towards $80,000. The interplay between market movements and Fed policy remains crucial in these projections.

Ethereum and Other Cryptocurrencies

Ether’s Performance

“On the other hand, asset management firm Bitwise has amended its S-1 registration with the US SEC and is 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,” Coinswitch added. The uncertainty in the market, partly driven by fed policy stems, continues to affect major cryptocurrencies like Ether.

Ether, a significant cryptocurrency, traded slightly over 1 percent lower at $3,213.0 and is now down more than 22 percent from its peak in mid-March. Ether’s price declined by over 5.4%, falling below $3,200.

Broader Market Impact

Concurrently, other prominent tokens like Binance’s BNB, Solana, and Dogecoin also experienced decreases of 6.1 percent, 8.8 percent, and 7.2 percent, respectively. Bitcoin has experienced a notable decline of 18.31 percent over the past 30 days. This downturn follows its peak above $73,700 in March, primarily driven by regulatory approvals, fed policy stems, and spot Bitcoin exchange-traded funds launch.

Conclusion 

The Fed Policy Stems and other factors stand on the growth of Bitcoin (BTC) and Ethereum (ETH). Analysts point out that the political tension clouding the world significantly affects the crypto market. If the right government comes into power, the crypto regulations and policies will allow a more stable market condition. The BIT Journal is available around the clock, providing you with updated information about the state of the crypto market.