A worsening macroeconomic climate and the collapse of industry giants similar to FTX and Terra have weighed on bitcoin’s price this 12 months.
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Cryptocurrency prices remained under pressure to finish the week.
Bitcoin was last lower by nearly 8% at $25,702.20, in accordance with Coin Metrics, following a surprising fall that began late Thursday.
The move pulled the remainder of the crypto market lower. Ether, Binance coin and Cardano’s ada token were each lower by about 4% Friday. Ripple’s XRP slid 12% and the Solana token lost 6%.
For the week, bitcoin is down greater than 11.5% and on pace for its seventh weekly loss previously eight and its worst week since November. Coin Metrics measures per week in crypto, which trades 24 hours a day, from the 4:00 p.m. ET stock market close one Friday to the subsequent.
Crypto was under pressure throughout Thursday but dropped sharply around 6 p.m. ET., following a report in The Wall Street Journal that Elon Musk’s SpaceX wrote down the worth of its bitcoin holdings by $373 million last 12 months and in 2021, and sold the cryptocurrency.
Bitcoin heads for its worst week since May
“The selloff appears to largely have been fear-induced on the back of headlines that SpaceX sold off Bitcoin assets,” said Darius Tabatabai, co-founder at decentralized exchange Vertex Protocol. “No proof has emerged that happened, and thin summer liquidity led to prices gapping dramatically downward, causing cascading liquidations in derivatives markets, further amplifying the drop similarly to how we have seen selloffs occur in panic selling episodes.”
“Currently, we’re seeing negative funding rates for perpetual futures, which may portend bearish momentum in the interim, but on this case it could thoroughly activate a dime, given the speed and violence of the move,” Tabatabai added.
Bitcoin has been stagnant for much of the third quarter, a historically weak one for the cryptocurrency. It’s now off 14% for the quarter and about 11% for August. Despite recent softness available in the market even ahead of this week’s dramatic slide, bitcoin continues to be up about 56% in 2023.
—CNBC’s Nick Wells contributed reporting.
