Bitcoin experiences a decline to its lowest point in four months due to concerns about liquidation.

The value of the largest cryptocurrency in the world had a decline of over 8%, reaching $53,523. This is below the level of support indicated on the chart, which is approximately $55,000, and is the lowest value since late February.

So far this week, it has had a 12% decline, despite the fact that several of the assets it typically follows, such as the Nasdaq (.IXIC), have shown gains.

Ether had a decline of 9% and reached a price of $2,841, which is the lowest it has been in almost two months.

According to media sources, Mt. Gox, the prominent cryptocurrency exchange that failed ten years ago, is considering giving bitcoin to its creditors. These creditors are expected to sell the bitcoin, as its value was only a few hundred dollars in 2014.

“The selling pressure is still attributed to creditors selling off assets from the bankrupt Mt Gox exchange,” stated Tony Sycamore, a market analyst at IG.

“Nevertheless, the rapid decline indicates that the market is attempting to anticipate the movement of funds from creditors.”

Analysts have also highlighted concerns over the potential replacement of Joe Biden as the Democratic Party’s presidential nominee with someone who is less supportive of cryptocurrencies. This concern arose following Biden’s uncertain performance in a debate with his opponent candidate, Donald Trump.

Bitcoin experienced a robust beginning to the year following the introduction of exchange-traded funds in the United States, which propelled its value to an all-time high of $73,803.25 in mid-March. Nevertheless, it has encountered difficulties in recent times.

“Due to the prolonged period of price stability and the recent decline towards the lower boundary of the range, there are numerous leveraged positions,” stated Justin D’Anethan from Keyrock, a market maker for digital assets. These positions are compelled to sell their assets when prices decrease.

“This naturally leads to a domino effect, causing prices to decrease more significantly than they would in a market with lower levels of financial leverage.”