Bitcoin dropped to its lowest level in two months on Thursday. According to Reuters, the cryptocurrency's value fell over 2% to $57,843, marking its lowest point since May 2 and losing over 6% this week alone.

Bitcoin Faces US Election Uncertainty

The leading cryptocurrency has faced increased pressure recently, with its decline accelerating after the first debate between US presidential candidates Joe Biden and Donald Trump.

This debate sparked discussions about the possibility of Biden being replaced as a candidate, contributing to market uncertainty. Market analyst Josh Gilbert from digital brokerage eToro noted that if Biden is replaced, the new candidate might not favor cryptocurrency, adding to investor concerns.

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Strong Start of Bitcoin in 2024

Bitcoin enjoyed a strong start to the year, boosted by the launch of exchange-traded funds in the US. It reached a record high of $73,803.25 in mid-March. However, the rally has lost momentum since then, with Bitcoin's value dropping by more than 21%.

Analysts also pointed out that the politically charged environment has led to some risk reduction, impacting Bitcoin amid the shifting dynamics of the US election campaign. 

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