Bitcoin (BTC-USD) extended its selloff on Friday morning trading as cryptocurrency traders faced multiple headwinds resulting in large liquidations. The original crypto dropped 7.7% to $26.1K, its lowest mark since mid-June, with $1.04B of long positions (mostly in Bitcoin and Ethereum) being wiped out according to Coinglass data.
The selloff of Bitcoin began earlier this week due to investors’ fears of higher-for-longer interest rates, regulatory scrutiny, and a weakening economy in China. Other major tokens also experienced intraday losses with Ethereum (-6.4%), XRP, Cardano (-3.7%), Dogecoin (-6.2%) and Solana (-5.5%) all being affected. Crypto-linked stocks also suffered, with MicroStrategy (-5%), Coinbase Global (-2%), Core Scientific (-5.2%), CleanSpark (-7%) and Bitfarms (-4.5%) all in the red.
Another potential cause of the crypto selloff is a report from the Wall Street Journal that Elon Musk’s rocket company SpaceX had written down the $373M of Bitcoin it held in 2020 and 2021. The newspaper noted that SpaceX had sold some Bitcoin but did not mention the amount or when.