Bitcoin Slides for Third Day as US Political Drama, Mt. Gox Tokens Weigh

The largest cryptocurrency fell as much as 4.3% on Thursday before paring some of the drop to trade 3% lower at $57,680 as of 10:38 a.m. in London.

Bitcoin fell as much as 4.3% on Thursday before paring some of the drop to trade 3% lower at $57,680 by 10:38 a.m. in London. Smaller tokens such as Solana and meme-crowd favorite Dogecoin also sank.

Investors across global markets are gaming out scenarios in case Biden, 81, succumbs to calls to scrap his US reelection bid. One possibility is that a stronger Democratic contender emerges to make life tougher for Republican Donald Trump, whose agenda favors the crypto industry.

“The likelihood of a stronger Democratic candidate replacing Biden who might not be pro-crypto is a factor,” said Richard Galvin, co-founder of Digital Asset Capital Management. “A bigger reason in the short term for the Bitcoin weakness is the overhang from Mt. Gox, and government selling.”

Traders in recent days have been weighing the risk of disposals by the US and German governments of seized Bitcoin. Data from Arkham Intelligence indicates that a wallet associated with the German state transferred about $75 million worth of tokens to exchanges on Thursday, the latest in a series of transfers.

Meanwhile, administrators of the failed Mt. Gox exchange are returning a hoard of Bitcoin to creditors in stages. Speculators are uncertain about how much of the $8 billion haul will end up being sold.

Bitcoin’s direction this year has largely been dictated by the risk-on or risk-off tone in global markets, which in turn is influenced by US economic data, the Federal Reserve’s monetary policy decisions and the war in Ukraine.

The cryptocurrency has also been tracking the performance of No. 2 token Ether, which is awaiting regulatory approval for US exchange-traded funds. If the launches occur, they could spur demand for other digital assets.

Bitcoin is trading close to a key technical level after slipping below an approximation of its six-month moving average price. Such breaches presaged more losses if history is any guide, data compiled by Bloomberg show.

Bitcoin dropped for a third day on Thursday as investors assessed the likelihood of further sales of seized tokens by authorities and awaited US economic data that could sway bets on the Federal Reserve’s monetary policy path.

The world’s largest cryptocurrency fell as much as 4.3% before paring some of the drop to trade 3% lower at $57,680 by 10:38 a.m. in London. Smaller tokens such as Solana and meme-crowd favorite Dogecoin also sank.

Investors across global markets are gaming out scenarios in case 81-year-old President Joe Biden succumbs to calls to scrap his US reelection bid. One possibility is that a stronger Democratic contender emerges to make life tougher for Republican Donald Trump, whose agenda favors the crypto industry.

“The likelihood of a stronger Democratic candidate replacing Biden who might not be pro-crypto is a factor,” said Richard Galvin, co-founder of hedge fund Digital Asset Capital Management. “A bigger reason in the short term for the Bitcoin weakness is the overhang from Mt. Gox, and government selling.”

Traders in recent days have been weighing the risk of disposals by the US and German governments of seized Bitcoin. Data from Arkham Intelligence indicates that a wallet associated with the German state transferred about $75 million worth of tokens to exchanges on Thursday, the latest in a series of transfers.

These follow the US Justice Department’s sale of some 2,000 Bitcoin in May, część of a hoard seized from the Silk Road marketplace. The tokens were valued at about $104 million at the time.

Bitcoin’s direction this year has largely been dictated by the risk-on or risk-off tone in global markets, which in turn is influenced by US economic data, the Federal Reserve’s monetary policy decisions and the war in Ukraine.

The cryptocurrency has also been tracking the performance of No. 2 token Ether, which is awaiting regulatory approval for US exchange-traded funds. If the launches occur, they could spur demand for other digital assets.

Bitcoin is trading close to a key technical level after slipping below an approximation of its six-month moving average price. Such breaches presaged more losses if history is any guide, data compiled by Bloomberg show.

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