Bitcoin price update: Why did cryptocurrency drop to new 2-month low?

Cryptocurrency Bitcoin dropped to a new two-month low on Friday, breaking out of a previous narrow range as a wave of risk aversion raced across global markets. After the Wall Street Journal reported that SpaceX had sold its cryptocurrency holdings and made an enormous write-down on its Bitcoin holdings, the price of Bitcoin dropped below 26,000 dollars on Thursday, to its lowest level since June, amid a general decline in the cryptocurrency market. Since the top exchange FTX fell in November 2022, it has dropped by the most in a single day. 

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Elon Musk's SpaceX sells its assets?

Global markets have been struck by a wave of selling, with Wall Street's major indexes finishing down on Thursday and Asian equities headed for a third week of losses due to worries about China's economy and expectations that U.S. interest rates would remain higher given a solid economy. The second-largest cryptocurrency, Ethereum, was stable at 1,685.20 dollars after falling significantly on Thursday.

It is reported that Elon Musk's SpaceX sold its Bitcoin assets after writing down the value by 373 million dollars. Some experts ascribed this to the decline in cryptocurrency. Crypto aficionados look up to Musk, and in the past, his tweets have caused changes in Bitcoin values.

Global yields are rising as robust economic indicators refute the idea that interest rates are at their top. The allure of alternative assets like cryptocurrency is typically reduced by higher interest rates. After months of the cryptocurrency's price increasing, it has now decreased. The 90-day volatility reached its lowest level since 2016 this week, continuing a downward trend in the gauges that track the price fluctuations of the original cryptocurrency.

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