Bitcoin Tumbles on SpaceX Crypto News

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Bitcoin prices dropped sharply amid a report that Elon Musk's SpaceX wrote down the value of its bitcoin holdings.

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SpaceX reportedly wrote down its bitcoin by $373 million over 2 years and sold some coins.

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The bitcoin sell-off echoed declines in stocks and bonds as investors adjust expectations for high US interest rates.

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Bitcoin had traded in a tight range over summer before the sudden plunge.

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Musk is seen as a crypto cheerleader, often influencing prices when he mentions coins.

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Tesla briefly accepted bitcoin payments in 2021 before abandoning the plan months later.

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Tesla recorded $204 million in bitcoin impairment losses last year due to valuation declines.

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Experts say the market is sensitive to Musk's actions given his influence.

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Low crypto trading volumes and decreased volatility also made prices susceptible to large trades.

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Liquidity and activity have dropped this year amid US regulatory crackdowns

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Thin liquidity was illustrated by how little bitcoin needed to be sold to move the price.

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Regulations have targeted illicit crypto activity and exchange practices, with lawsuits filed.

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