Investing.com — slumped by more than 7% on Friday, but regained some ground, as volatility returned to the world’s most well-known cryptocurrency after a relatively stable period of trading in recent months.
By 09:00 ET (13:00 GMT), the price of the digital token had fallen by 7.60% to $26,331. Despite the decline, Bitcoin’s price represents a slight recovery after it dipped below $26,000 on Thursday.
Among a number of factors cited by analysts, soaring bond yields and subsequent investor nervousness around riskier assets have taken their toll on Bitcoin. It is now trading hands well below its annual high of $31,818 recorded in July.
Sentiment was also dented by a report in the Wall Street Journal that said that SpaceX, billionaire Elon Musk’s rocket company, had written down the value of Bitcoin it owns by $373 million last year and in 2021 and had sold the cryptocurrency. Musk has become something of a fixture in the crypto community, often posting on social media about the market for digital assets over recent years.
Analysts have told media outlets that fears over a sputtering post-pandemic recovery in China and thin trading volumes may be factoring into the moves in Bitcoin as well.