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Bitcoin, which saw $68,000 at the beginning of the week, fell to $64,000 on Thursday. Several factors contributed to the decline, including a dip in poll numbers for pro-crypto presidential candidate Donald Trump, the ongoing sale of bitcoin holdings from the bankrupt Japanese exchange Mt. Gox, and a broader downturn in U.S. technology stocks.
Investors appear to be locking in profits ahead of Trump's highly anticipated speech at the Bitcoin Summit this weekend.
Volatility rose again in cryptocurrency markets. Bitcoin, which tested over $68,000 at the beginning of the week and climbed to the highest level of the last five weeks, could not hold this level and started to decline.
While investors are searching for answers to the question, "Why is Bitcoin falling," three reasons stand out.
Ahead of the U.S. elections, regulations and possible policies regarding cryptocurrencies are being closely monitored. The Bitcoin 2024 Conference, which could host important developments in this context, starts Thursday in Nashville, the capital of the U.S. state of Tennessee.
For the first time, a U.S. presidential candidate will attend a Bitcoin summit. Trump is expected to deliver a speech on Saturday at the conclusion of the three-day event, which will also feature various celebrations.
While the statements of the U.S. presidential candidates dominate the crypto markets, Trump may define bitcoin as a "strategic reserve asset" in his speech on Saturday.
The 50-day average, currently at $63,400 for bitcoin, serves as significant support. Analysts suggest that if this support holds, the market could benefit from buying back into the Trump expectation. The first significant resistance level in upward movements is at $66,000.
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