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Bitcoin plunged about 10% after it was revealed that SpaceX sold the cryptocurrency.
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The Wall Avenue Journal reported that SpaceX wrote down the worth of bitcoin it owns by $373 million.
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The latest bounce in bond yields to 16-year highs has weighed on threat belongings total, together with crypto.
The value of bitcoin plunged about 10% hours after it was revealed that Elon Musk’s SpaceX sold the cryptocurrency.
The Wall Avenue Journal reported on Thursday that SpaceX, which first bought bitcoin in 2021, wrote down the worth of its bitcoin holdings by a complete of $373 million in 2021 and 2022 and has sold the crypto.
The write-down coincides with a steep drop in bitcoin’s worth, which crashed in late 2021, setting off a “crypto winter” that prolonged via most of 2022.
In the meantime, Musk’s electrical car firm Tesla made comparable strikes with bitcoin. Final yr, the firm disclosed that it sold most of its bitcoin holdings after buying it in 2021.
Following the WSJ report, which cited SpaceX monetary paperwork, the worth of bitcoin plunged about 8% to about $26,500, and has since additional decline to about $26,200. The value of bitcoin is down 11% over the previous week, buying and selling at ranges final seen in mid-June.
The bounce in bond yields has additionally been weighing on threat belongings total, together with crypto. On Thursday, the 10-year Treasury yield hit the highest stage since 2007 amid indications the Federal Reserve stays hawkish on charges.
Previous to the latest slide, bitcoin had been buying and selling in a sideways vary for months as buyers held out hope for the potential SEC approval of a spot bitcoin ETF, with purposes from big-name monetary establishments like BlackRock.
Fundstrat’s Tom Lee has argued {that a} potential bitcoin ETF approval may send the cryptocurrency to new highs above the $100,000 level.
However the SEC has but to indicate any indication that an approval is imminent, and more lately has delayed motion on a number of bitcoin ETF purposes.
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Bitcoin plunges more than 10% after Elon Musk’s SpaceX reportedly sold the cryptocurrency ca.motion pictures.yahoo.com 2024-05-26 20:27:19
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