Bitcoin Drops to 4-Month Low, Ether Plunges 8%

Bitcoin experienced a significant decline, reaching a four-month low of $55,366 on Friday, marking its worst weekly performance in a year. The slump was attributed to several factors, including uncertainty surrounding Joe Biden's future as the Democratic presidential candidate and concerns about potential increases in crypto supply. Investors are also worried about a potential replacement of Biden with a less crypto-friendly candidate, particularly after his performance in the first presidential debate. Adding to the downward pressure, news of Mt. Gox, a defunct cryptocurrency exchange, repaying its creditors raised concerns about potential bitcoin selloffs by those creditors. Ether also experienced a significant drop, falling 8% to $2,891, its lowest point in a month and a half. While Bitcoin had a strong start to the year, gaining momentum after the launch of exchange-traded funds (ETFs) in the U.S. and reaching a record high of $73,803.25 in mid-March, it has since lost over 21% of its value.