Bitcoin on Friday sank to a four-month low, sliding more than 8 per cent to $53,523, amid talks about an out-of-business crypto exchange deciding to payback creditors.
The figure has been the lowest since late February, owing in great part to almost 12 per cent in price this week alone.
Rival coin Ether also sank to 9 per cent to $ 2,841 – its two-month lowest.
The slide is being attributed Japan-based crypto exchange Mt. Gox, which went under a decade ago, returning Bitcoin to its creditors.
According to media reports, these creditors are now being seen as potential sellers since the token was worth only hundreds of dollars in 2024.
"The selling pressure is still related to creditor selling from the failed Mt Gox exchange. However, the acceleration to the downside suggests the market is trying to get ahead of the creditor flows," Tony Sycamore, a market analyst at IG, told Reuters.
According to experts, a general fear that US president Joe Biden may be replaced by a not-so-crypto friendly Democrat nominee may also have contributed to the downslide.
Such concerns have been bolstered since a shaky debate performance of Joe Biden against Donald Trump earlier in the week.
After the launch of exchange trade funds in the US, Bitcoin had a strong start to the year, shooting up to $ 73,803.25 in mid-March, However, it has struggled since.
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