Bitcoin Price Drops, Pressured Negative Sentiment Of The US Presidential Election And Mt. Gox

Bitcoin prices are affected by the political situation and Mt's efforts. Gox compensates creditors. (Photo; Doc. Zipmex)

JAKARTA - Bitcoin prices decreased on Thursday, July 25, 2024, continuing a downward trend this week. Ethereum (ETH), the second largest crypto asset after Bitcoin, also experienced a significant decline.

Traders appear to be unaffected by the launch of the Ethereum Exchange Trade Funds (ETF) spot on the US market this week. This launch attracted only a small portion of the capital flow compared to the Bitcoin spot ETF launched earlier this year. Bitcoin fell 2.4% in the last 24 hours to 64,265 US dollars (Rp1,028,240,000).

Depressed Political Situation

The wider crypto market, including Bitcoin, is also under pressure by uncertainty over the US presidential election. President Joe Biden resigned from his candidacy and supported Vice President Kamala Harris as the main candidate for the Democratic Party.

Harris is reported to have better ratings in opinion polls than Biden against Republican candidate Donald Trump and received broad support from the Democratic Party.

Given Harris's background as a public prosecutor who has cracked down on profit-oriented banks and colleges, it appears he will continue Biden's agenda on stricter financial regulations in the country, which is considered unfavorable for the crypto market.

Media reports said Harris refused an invitation to speak at the Bitcoin Conference in Nashville, sparking anger from some crypto advocates.

Initial speculation about Trump's presidency has helped the crypto market, especially given the pro-crypto stance commonly held by Republican candidates. Trump is scheduled to speak at the Bitcoin Conference on Saturday.

Bitcoin Distribution From Mt Gox

Sentiment to Bitcoin is also getting weaker as a result of reports showing the Mt Gox defense exchange has moved more tokens to the stock exchange, possibly for further distribution preparation.

Mt Gox has become a major problem for the price of Bitcoin, as the closed exchange began returning stolen tokens during the 2014 hack. Traders speculate that recipients of these tokens tend to sell them, given the huge rise in Bitcoin prices over the past decade.

According to a report from CoinDesk, more than 137,000 Bitcoins worth about $2 billion are expected to be distributed by Mt Gox to creditors. This is expected to add to the significant selling pressure in the market.