Stocks Slide to $64K Amid Risk-Off Trends and Political Uncertainty

Bitcoin experienced a decline on Thursday, continuing a downward trend throughout the week as a general risk-averse sentiment kept traders cautious about cryptocurrencies. Additionally, ongoing speculation surrounding the U.S. presidential election added to the uncertainty.

Ethereum, the second-largest cryptocurrency, also faced losses as traders largely overlooked the recent launch of spot exchange-traded funds (ETFs) in U.S. markets. This launch received significantly less capital inflow compared to the earlier spot Bitcoin ETFs.

Investor sentiment took a hit following a sharp drop in Wall Street indexes on Wednesday, where significant selling of major technology stocks occurred following disappointing second-quarter earnings.

Bitcoin fell 3.3% in the past 24 hours, trading at $64,024.70 as of 08:57 ET.

### Bitcoin Impacted by Political Uncertainty and Risk Aversion

The uncertainty surrounding the U.S. presidential race, particularly after President Joe Biden withdrew from the race and endorsed Vice President Kamala Harris as the Democratic frontrunner, further influenced Bitcoin and the broader cryptocurrency market. Harris was perceived as polling favorably against Republican nominee Donald Trump and seemed to have considerable support within the Democratic Party.

Given her background as a public prosecutor known for pursuing stricter regulations against banks and for-profit educational institutions, many speculated that Harris would continue the Biden administration’s focus on tighter financial regulations, which could negatively affect the crypto market.

Additionally, there were reports that Harris declined an invitation to speak at the Bitcoin Conference in Nashville, frustrating several proponents of cryptocurrency. Initial enthusiasm regarding a potential Trump presidency had previously boosted crypto markets, given his pro-crypto stance. Trump is scheduled to speak at the Bitcoin Conference on Saturday.

### Bitcoin Affected by Mt Gox Token Movements

Further pressure on Bitcoin’s sentiment came from reports indicating that the defunct exchange Mt Gox had moved additional tokens to exchanges, likely in preparation for further distributions. Mt Gox has been a significant concern for Bitcoin’s price, as it began returning tokens lost during a hack in 2014. Traders speculated that recipients of these tokens may be inclined to sell, especially in light of Bitcoin’s substantial price increases over the past decade.

### Crypto Market Update: Ether Declines Amid ETF Launch

In the broader cryptocurrency market, Ethereum dropped nearly 9% to $3,143.52 on Thursday. The launch of spot ETFs in U.S. markets earlier this week did generate robust trading volumes exceeding $1 billion during their debut. However, this figure fell short of the $4 billion in volume recorded by Bitcoin ETFs, indicating a weaker appetite among investors.

Other altcoins also saw little movement, with one major cryptocurrency sliding slightly and others, including some experiencing drops of 5.5% and 6%. Among meme tokens, specific tokens experienced a decline of 7.2%.

### Marathon Digital Acquires $100 Million in Bitcoin, Embraces ‘Full HODL’ Strategy

Marathon Digital, a well-known Bitcoin miner, announced on Thursday its acquisition of an additional $100 million worth of Bitcoin. The company’s shares saw a decline of over 2% in premarket trading.

This purchase is part of Marathon Digital’s “full HODL” strategy, which aims to retain all Bitcoin mined through its operations while periodically making strategic market purchases. CEO Fred Thiel expressed confidence in Bitcoin’s long-term value, stating that it is the best asset for treasury reserves and advocating for governments and corporations to consider holding Bitcoin as a reserve asset.