Bitcoin Drops to Two-Month Low
Bitcoin’s price sharply declined to a two-month low on Thursday, breaking a major support level amid uncertainty, and received little support from a weakening dollar, which fell due to increasing bets on rate cuts by the Federal Reserve. The broader cryptocurrency market also saw declines following Bitcoin’s drop.
Bitcoin suffered significant losses over the past week as traders prepared for a potential mass sell-off, largely stemming from the defunct Mt. Gox cryptocurrency exchange.
Liquidators of the exchange stated that they would begin returning the bitcoins stolen during the 2014 hack to customers starting in early July. While the distribution volume remained unclear, traders bet that, given the massive increase in Bitcoin’s price over the past decade, most recipients of the tokens would be inclined to sell. Additionally, the cryptocurrency faced pressure from the sale of tokens confiscated by the German government.
Fears of mass selling led traders to broadly turn away from the world’s largest cryptocurrency. These selling pressures extended to the wider cryptocurrency market, even as recent data showed some improvement in capital inflows into cryptocurrencies. Prices of cryptocurrencies broadly fell on Thursday and also suffered over the past week.
Ether, the world’s second-largest cryptocurrency, dropped 5.4%, as traders largely ignored recent speculation regarding a spot Ether trading fund. Ether touched its lowest level in over a month, largely erasing the gains made in May.
