Bitcoin Faces Its Steepest Fall in a Year Amid Market Uncertainty

Bitcoin faces its largest weekly decline in almost a year as concerns grow over the possible sale of tokens from the collapsed Mt. Gox exchange. Prices dropped to $53,523 while Ethereum also saw significant losses. Analysts point to factors including creditor selling and potential political changes as influencing the downturn.

Bitcoin is on track for its biggest weekly drop in nearly a year, as fears mount over the potential offloading of tokens from the defunct Japanese exchange Mt. Gox and further sales by leveraged investors following the cryptocurrency's strong performance.

The price plummeted by as much as 8% to $53,523, marking its lowest level since late February. It recovered slightly to trade at $56,565, down over 3% for the day and heading for a 10% weekly decline, the largest since August 2023. Ether also suffered, dropping to a two-month low of $2,822.30 and later settling at $2,976.62, down 5.28%.

Market analyst Tony Sycamore attributed the selling pressure to creditor actions from the failed Mt. Gox exchange and noted that the market seems to be preemptively adjusting. The downward shift triggered the most significant daily liquidations for crypto traders since the 2022 FTX collapse. Concerns over Joe Biden's potential replacement as the Democratic nominee also added to market jitters.

(Disclaimer: With inputs from agencies.)