Bitcoin fell to a four-month low on Friday and is on track to have its worst week in a year, due to uncertainty over whether Joe Biden will continue as the Democratic presidential candidate and concerns about a potential increase in cryptocurrency supply.
Bitcoin's price fell 5% on Friday to $55,366, the lowest level since late February, and it is down 10% for the week. Ethereum's price dropped 8% to $2,891, the lowest in a month and a half.
Bitcoin showed strong performance at the beginning of the year, driven by the launch of a U.S. traded fund, pushing its price to an all-time high of $73,803.25 in mid-March. However, since then, Bitcoin has declined by over 21%.
Market participants indicated that investors are also concerned that Biden might be replaced by a less crypto-friendly Democratic candidate, due to his poor performance in the first debate with Donald Trump.
Analysts also pointed out that the once-leading cryptocurrency exchange Mt. Gox is repaying its creditors. Reports suggest that if these creditors sell their tokens, Bitcoin could face further downward pressure.
