Bitcoin experienced a decline to a two-month low on Thursday, continuing its month-long downward trend, influenced by uncertainties surrounding the US presidential elections and reports of Bitcoin supply from a now-defunct Tokyo-based cryptocurrency exchange.

The cryptocurrency dropped by over 2% to $57,843, marking its lowest point since May 2, and has seen a loss of more than 6% this week. The world's largest cryptocurrency has faced increasing pressure in recent months, with its downturn intensifying following the first debate between US presidential candidates Joe Biden and Donald Trump, which sparked concerns about Biden potentially being replaced as a candidate.

"If Biden is replaced, and there is considerable discussion about this possibility, the new candidate might not support cryptocurrency," commented Josh Gilbert, a market analyst at digital brokerage eToro. Bitcoin had a robust beginning to the year, boosted by the introduction of exchange-traded funds in the US, which drove it to an all-time high of $73,803.25 in mid-March as investor interest surged. However, this surge has since faded, with Bitcoin losing over 21% since then.

The current political climate, marked by ongoing elections in France and Britain, is contributing to a reduction in risk appetite, according to analysts, alongside the shifting dynamics in the US election campaign. Analysts also noted reports that Mt. Gox, once the leading cryptocurrency exchange before its collapse in 2014, is in the process of repaying its creditors, which could be contributing to Bitcoin's lower value if those creditors decide to sell their holdings.

"There is a expectation that some of the original Bitcoin buyers will begin to sell their holdings, which is a significant amount," stated Tony Sycamore, a market analyst at IG. Sycamore further added that despite this being a period of consolidation for the cryptocurrency after earlier strong gains, it could potentially retest its March highs and possibly rise towards $80,000.

Ether, another key cryptocurrency, was trading over 1% lower at $3,213.0, and has decreased by more than 22% from its peak in mid-March.