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.

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

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

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

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

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

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

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

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

Liquidity and activity have dropped this year amid US regulatory crackdowns

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

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