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SpaceX’s Crypto Unplugged: Bitcoin’s Dizzying Drop Amid Musk’s Moves

Bitcoin aficionados had their screens painted red recently, as the king of cryptocurrencies nosedived by a sharp 10%. What was the market turmoil all about? The culprit, this time around, seems to be none other than Elon Musk’s ambitious space endeavor, SpaceX.

The buzz came about when SpaceX’s financial sheets showed a markdown of their Bitcoin holdings by a whopping $373 million over 2021 and 2022, hinting that they offloaded their crypto cache. Not too long ago, the space giant made its initial foray into the Bitcoin realm back in 2021.

But it wasn’t just the outer space enthusiasts who pulled out. Back on terra firma, Musk’s electric car vanguard, Tesla, went down a parallel road. After buying Bitcoin in 2021, Tesla too apparently hit the sell button on most of its holdings within the year.

Following the ripples from SpaceX’s revelations, Bitcoin experienced a jolt, shedding around 8% of its value, grounding at approximately $26,500, and soon after descending to a slightly lower $26,200. If you’ve been tracking Bitcoin over the past week, you’d have noticed it’s lost 11% of its luster, mirroring figures last seen in the balmy days of mid-June.

Adding to the crypto’s descent, bond yields have been making headlines too. A noteworthy uptick in the 10-year Treasury yield, peaking at its zenith since 2007, shows signs of the Federal Reserve continuing to be bullish about interest rates.

However, not all seems bleak in the crypto corridor. For a good stretch, Bitcoin had been holding its ground, with market enthusiasts eagerly awaiting a potential nod from the SEC for a spot Bitcoin ETF. This was fueled by heavyweight financial contenders like BlackRock tossing their hats into the ETF ring.

Tom Lee from Fundstrat has been vocal about this possibility, suggesting that should the SEC give the green light, we could witness Bitcoin skyrocket, perhaps even breaching the illustrious $100,000 mark.

But for now, the SEC’s silence remains deafening. Delays are the only actions seen on several bitcoin ETF applications, leaving market watchers and crypto enthusiasts in a state of anxious anticipation. Will the regulatory nod come, or will Bitcoin need to find other catalysts to reignite its flame? Only time will tell.