Bitcoin’s price fell about 10% hours after it was announced that Elon Musk’s SpaceX had sold the cryptocurrency.
The Wall Street Journal reported Thursday that SpaceX, which first bought bitcoin in 2021, depreciated the value of its bitcoin holdings by a total of $373 million in 2021 and 2022 and sold the crypto.
The write-down coincides with a sharp drop in the price of bitcoin, which crashed in late 2021 and triggered a “crypto winter” that stretched into most of 2022.
Meanwhile, Tesla, Musk’s electric vehicle company, has been making similar moves with bitcoin. Last year, the company announced that it has sold most of its bitcoin holdings following the 2021 acquisition.
After the WSJ report, which cited financial documents from SpaceX, bitcoin’s price dropped about 8% to about $26,500, and has since fallen further to about $26,200. Bitcoin’s price is down 11% in the past week and is trading at levels last seen in mid-June.
The rise in bond yields is also weighing on risky assets in general, including crypto. On Thursday, 10-year Treasury yields reached their highest level since 2007, amid indications that the Federal Reserve remains aggressive on interest rates.
Prior to the recent drop, bitcoin had been trading in a sideways range for months as investors hoped for the potential SEC approval of a spot bitcoin ETF, with filings from major financial institutions such as BlackRock.
Fundstrat’s Tom Lee has argued that a potential bitcoin ETF endorsement could send the cryptocurrency to new highs above the $100,000 level.
But the SEC has no indication yet that approval is imminent, and more recently has delayed action on several bitcoin ETF filings.
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