Cryptocurrency prices under pressure as Bitcoin loses 7% in worst week since May
Cryptocurrency prices ended the week on a low note, with Bitcoin experiencing a 7% drop. This marks Bitcoin’s worst week since May and its seventh weekly loss in the past eight. The decline was triggered by news that Elon Musk’s SpaceX had written down the value of its Bitcoin holdings and sold the cryptocurrency. However, there is no concrete proof of these actions taking place. The drop in prices was also influenced by thin summer liquidity, causing cascading liquidations in derivatives markets.
Key Points:
- Bitcoin lost 7% to record its worst week since May.
- Elon Musk’s SpaceX reportedly wrote down the value of its Bitcoin holdings and sold the cryptocurrency.
- The drop in prices was fear-induced and influenced by thin summer liquidity.
- Negative funding rates for perpetual futures suggest bearish momentum.
- Bitcoin is still up about 57% in 2023 despite recent softness in the market.
Your Hot Take: The crypto market continues to experience volatility, with Bitcoin suffering significant losses. While fear and panic selling may have contributed to the recent drop, it’s important to note that these events are not unprecedented. The market has shown resilience in the past, and there is potential for a turnaround in the near future. As a crypto reader, staying informed and monitoring market trends can help you navigate these uncertain times and make informed investment decisions.
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