Bitcoin has hit a two-month low, extending previous days’ losses amid a wider sell-off across global financial markets.
The world’s most popular cryptocurrency tumbled 9 per cent to below $25,500 last night, or the lowest it has been since mid-June, according to data by Coindesk.
The sharp fall coincided with reports that Elon Musk’s rocket company SpaceX dumped some of its holdings in bitcoin. Bitcoin has partly recovered today, but remains down by around 7 per cent over the last 24 hours to around $26,400.
Other cryptos have also been hit, with ethereum, the second-largest by market cap, falling below $1,600 last night, before regaining some losses to trade down by around 6 per cent to $1,682 today.
The latest fall leaves bitcoin down almost 20 per cent from a high point of over $31,000 in July.
The cryptocurrency had been hovering close to $30,000 in recent months, having gradually recovered this year after dropping sharply in 2022, when various crypto firms collapsed, leaving investors with large losses.
Some analysts have attributed the latest fall to a report by the Wall Street Journal claiming that Elon Musk’s SpaceX sold its bitcoin holdings after writing the value down by $373million.
The SpaceX report was the ‘immediate catalyst’ for bitcoin’s sell-off, said Ben Laidler, global markets strategist at eToro.
‘The broader driver is that crypto assets are not immune to the deepening risk-off selling pressure seen across all asset classes,’ he added…Source – Read More!