These past 24 hours have been quite challenging for Bitcoin. After a wave of negative headlines and a drop following the rising bond yields, the week ended with a decline, pushing prices down to the $25,000 level before a slight turnaround on Friday.
According to data from Dow Jones Market Data Group, the largest cryptocurrency dropped over 11% in value, marking the sixth consecutive day of losses.
Following a report by The Wall Street Journal late on Thursday, uncertainties about the volatility in the crypto market were sparked. Many speculations arose after it was reported that SpaceX, led by Elon Musk, either sold or halted the use of $373 million worth of Bitcoin.
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No immediate response was provided to questions posed to SpaceX about the interview conducted by Fox Business.
Bitcoin Magazine, in a post on Ex, a social media platform formerly known as Twitter, raised questions about the accuracy of the reported sale or cut in a transaction.
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While Brock Pierce, the Chairman of the Bitcoin Foundation, told Fox Business that the report could contribute to the sell-off, he also noted that it could have broader implications, such as an impact on the Treasury’s holdings growth.
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“Other things in your portfolio that are broadly market-based, like rising interest rates. And why take the risk when you’re sitting comfortably and the government is paying high yields, but why take the risk when you know the government is going to pay high yields and come out of risky investments and go into investment products like safe funds?” he mentioned.
On Thursday, the 10-year yield reached 4.307%, hitting a new 52-week high. According to Dow Jones Market Data Group, this government bond’s security is now at its highest level since November 2007. Yields slightly decreased on Friday.
The Federal Reserve has raised interest rates 11 times to a 22-year high of 5.5% from 5.25%. Insights from the minutes of the latest meeting, released this week, indicate that policymakers remain concerned about currency depreciation, which could necessitate further rate hikes.
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Additionally, the US Dollar Index (DXY) has been on a strong streak for seven consecutive trading days, marking the largest seven-day gain and percentage increase since July 24, 2023, as reported by Dow Jones Market Data Group.
According to a research note by Hani Abuali, Senior Market Analyst at Extibi, more than $1 billion worth of cryptocurrency positions have been sold rapidly, the highest since June 2022.