Bitcoin price fell to a two-month low: What is the reason?

Bitcoin has dropped to a two-month low amid uncertainty over the US presidential elections and reports of a surge in Bitcoin supply from the bankrupt Tokyo-based cryptocurrency exchange Mt. Gox, which collapsed in 2014.

The world's largest cryptocurrency fell to a two-month low on Thursday, continuing a decline that began a month ago. Bitcoin's price fell more than 2% to $57,843, the lowest since May 2. Over the current week, the cryptocurrency has lost more than 6% of its value, according to Reuters.

Experts note that Bitcoin's price is influenced by concerns related to the potential replacement of Joe Biden as the Democratic Party candidate for US president. "If Biden is replaced, and there's a lot of talk about that now, the new candidate may not be as favorable to cryptocurrencies," commented Josh Gilbert, an analyst at the international social trading platform eToro.

Despite a strong start to the year, driven by the launch of exchange-traded funds (ETFs) in the US, which led to a record surge to $73,803.25 in mid-March, the leading cryptocurrency has now lost more than 21% from its peak value.

Analysts also refer to information that Mt. Gox, once the world's largest cryptocurrency exchange before its bankruptcy in 2014, has begun payments to its creditors. This could put additional pressure on Bitcoin's price if creditors start selling the received tokens en masse.

Tony Sycamore, a market analyst at IG, noted: "Some of the original Bitcoin buyers are expected to start selling their assets on the market, which represents a fairly significant share." However, he also added that despite the current situation, Bitcoin might retest the March highs and possibly rise to $80,000.

Amid the overall decline in the cryptocurrency market, Ethereum, the second-largest cryptocurrency, was also trading down more than 1% at $3,213, having lost more than 22% from its peak value in March.