Bitcoin, the top cryptocurrency, experienced a significant drop, reaching a two-month low amidst a wave of risk aversion in global markets. On Thursday, it fell by 7.2%, marking its largest daily decline since November 2022 when top exchange FTX collapsed. During Asian trading hours on Friday, it slipped to $26,172, its lowest level since June 16. However, it partially recovered to $26,441 by 0835 GMT, down 0.8% for the day. The decline in global markets, concerns about China’s economy, and expectations of longer-lasting higher U.S. interest rates contributed to the selling pressure. Ether, the second-largest cryptocurrency, also experienced a sharp drop before stabilizing at $1,685.20. The sell-off in Bitcoin was sparked by a Wall Street Journal report that SpaceX, led by Elon Musk, sold its Bitcoin holdings after reducing its value by $373 million. This news, coupled with low volatility and a lack of enthusiasm from retail investors, contributed to the decline in Bitcoin’s price. The cryptocurrency had been trading around $30,000 in recent months, gradually recovering from significant losses in 2022. The market had seen some optimism with BlackRock’s application to launch a spot Bitcoin exchange-traded fund, but concerns about the outcome of Grayscale’s lawsuit against the SEC have dampened the sentiment.
Bitcoin drops to new two-month low as world markets sell off
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