July 25 2024: Bitcoin’s price fell on Thursday, continuing a week-long downturn as broader risk-off sentiment kept traders cautious about cryptocurrencies. Speculation over the U.S. presidential election also contributed to the decline.
Ether, the world’s second-largest cryptocurrency, also faced losses as traders largely ignored the recent launch of spot exchange-traded funds (ETFs) in U.S. markets. These ETFs attracted significantly less capital compared to spot Bitcoin ETFs launched earlier this year.
A sharp drop in Wall Street indexes on Wednesday, driven by a sell-off in major technology stocks following disappointing second-quarter earnings, further impacted market sentiment.
Bitcoin Drops Amid Political Speculation and Risk-Off Mood:
Bitcoin fell 2.4% in the past 24 hours to $64,265.0 by 01:48 ET (05:48 GMT).
Uncertainty over the U.S. presidential race added to the negative sentiment, especially after President Joe Biden withdrew from the race and endorsed Vice President Kamala Harris as the Democratic frontrunner.
Harris, polling better than Biden against Republican nominee Donald Trump, appeared to have widespread support from the Democratic party.
Given Harris’s history as a public prosecutor, it seemed likely she would continue Biden’s agenda of stricter financial regulations, which could negatively impact the crypto market.
Reports indicated that Harris declined an invitation to speak at the Bitcoin Conference in Nashville, drawing criticism from crypto proponents.
Initial speculation of a Trump presidency had supported crypto markets, given Trump’s pro-crypto stance. Trump is scheduled to speak at the Bitcoin Conference on Saturday.
Bitcoin Affected by Mt Gox Token Movements:
Sentiment towards Bitcoin was further weakened by reports that the defunct exchange Mt Gox moved more tokens onto exchanges, likely preparing for further distributions.
Mt Gox has been a significant issue for Bitcoin’s price, as the exchange began returning tokens stolen during a 2014 hack. Traders speculated that recipients of these tokens would be inclined to sell them, considering Bitcoin’s substantial price gains over the past decade.
Crypto Price Today: Ether Tumbles, Altcoins Sink:
Ether fell 7.7% to $3,117.61 on Thursday.
Despite strong trading volumes exceeding $1 billion during the launch of spot ETFs in U.S. markets, this was much lower than the $4 billion volumes seen by Bitcoin ETFs, indicating relatively lower investor interest.
Other altcoins also struggled. XRP rose slightly, while SOL and ADA fell 2% and 3.2%, respectively.
Among meme tokens, DOGE dropped 5.3%, while SHIB lost 4.8%.
