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 Democratic Party’s nominee for U.S. president and concerns about potential increases in the supply of cryptocurrencies.
Bitcoin fell 5% to $55,366, its lowest since late February, on Friday, and is down 10% on the week. Ethereum fell 8% to $2,891, its lowest in a month and a half.
Bitcoin got off to a strong start to the year after the launch of exchange-traded funds in the United States, sending it to a record high of $73,803.25 in mid-March. However, Bitcoin has lost more than 21% since then.
Market participants said investors were also concerned about the possibility that Biden could be replaced as the Democratic presidential nominee by someone less supportive of cryptocurrencies, following his poor performance in the first debate against Donald Trump.
Analysts also pointed to reports that Mt. Gox, the world’s leading cryptocurrency exchange before it went out of business in 2014, is repaying its creditors. That has raised concerns that Bitcoin is likely to face further downward pressure if those creditors dump their tokens.
