It was 24 hours in the wilderness bitcoincapping a bearish week after a wave of negative headlines and a rally in bond yields that pushed prices to the $25,000 level before rebounding slightly on Friday.
The largest cryptocurrency by market capitalization is down for the sixth consecutive day with losses exceeding 11%, according to a track of market data set from Dow Jones.
a lot of Cryptocurrency speculation on downside fluctuations It came after The Wall Street Journal reported late Thursday that Elon Musk’s SpaceX company wrote or gave away $373 million in bitcoin.
Inquiries from FOX Business were not immediately returned to SpaceX.
Bitcoin Magazine, in a post on X, the social media site formerly known as Twitterquestioned the accuracy of the reported sale or discount.
While the head of the Bitcoin Foundation, Brock Pierce, told FOX Business that the report may have contributed to the sell-off, he also indicated what might have had a bigger impact: higher Treasury yields.
“You have a number of other things called the broader market, like higher interest rates. And when you sit back and the government is paying high returns, but why take a risk when you know the government is going to pay a high return and people are moving out of riskier investments into safer funds like investment products is Don.
On Thursday, the 10-year yield reached 4.307%, a new 52-week high. The security of that government debt is now at its highest level since November 2007, according to the Dow Jones market data group tracking. Yields fell slightly on Friday.
The Fed raised interest rates 11 times to a 22-year high of 5.25% to 5.5%, and minutes from the latest meeting, released this week, showed that policymakers remain concerned about inflation, which may require further rate increases.
In addition, the WSJ Dollar Index was strengthening, up for seven consecutive trading days, its biggest seven-day and percentage gain since Monday, July 24, 2023, according to tracking market data set from Dow Jones.
Selling bullish cryptocurrency positions has surpassed $1 billion, the most since June 2022, according to a research note by Hany Abou-Ejela, senior market analyst at XTB.