Bitcoin prices plunged on Friday, sinking to their lowest point since late February. The world’s leading cryptocurrency plummeted 8%, dragging its price down to $53,523. This drop puts Bitcoin on track for its worst weekly performance in over a year, with losses exceeding 12%.
Ether, the second-largest cryptocurrency, mirrored Bitcoin’s slump, experiencing an 8% decline to $2,841. This marks a two-month low for Ether.
Analysts point to several factors behind the crypto downturn. Concerns linger over the potential release of long-dormant Bitcoin from the defunct Mt. Gox exchange. These coins, once valued in the hundreds of dollars, could be sold by creditors, impacting the market. Additionally, uncertainty surrounding the US presidential election and potential cryptocurrency regulations are weighing on investor sentiment.
Despite a strong start to 2024 fueled by US exchange-traded funds, Bitcoin has shed more than 21% since its mid-March peak. Whether the cryptocurrency can recover or if this marks a deeper downturn remains to be seen.