- Bitcoin suffered its largest weekly percentage loss since the collapse of FTX.
- Some factors behind the drop include reports that SpaceX reduced its Bitcoin holdings and the Chinese property giant Evergrande filing for bankruptcy.
- Tokens from major prediction markets have shown an overall bullish trend amid the broader crypto market turmoil.
In a move that surprised many cryptocurrency investors, the price of Bitcoin (BTC) fell by about 11.2% to roughly $26,000. Last week marked Bitcoin’s worst week since the fall of FTX in November 2022.
The market downturn extended beyond BTC: other digital assets also posted significant declines. Ethereum (ETH) fell roughly 9.5% to about $1,700, while Binance Coin (BNB) dropped about 9.8% to $217, among other large-cap cryptocurrencies.
Despite widespread losses across major coins, tokens tied to prediction markets—such as Gnosis (GNO), SX Network (SX), Kleros (PNK), and Augur (REP)—recorded notable gains. Chancer (CHANCER), a newer prediction market token currently in presale, has also gained traction as its token sale progresses.
What caused the cryptocurrency market decline?
The price slump was driven by several factors: reports that SpaceX marked down the value of Bitcoin on its books, Evergrande’s bankruptcy filing, and rising U.S. Treasury yields.
SpaceX’s Bitcoin holdings
The Wall Street Journal published a report late last week alleging that Elon Musk’s SpaceX reduced the recorded value of its Bitcoin holdings by $373 million for the years 2022 and 2021. The report also claimed the company sold part of the Bitcoin it once held during those two years. The WSJ cited documents it said provided rare insight into the private company’s finances.
These claims cannot be independently verified because SpaceX is a private corporation. Musk did acknowledge that SpaceX purchased Bitcoin during a 2021 panel appearance, but the precise amounts and timing of purchases remain unclear.
Evergrande bankruptcy
Over the weekend, Chinese property developer Evergrande reportedly filed for bankruptcy protection in the United States. The company is said to be taking steps to secure assets while seeking to manage creditors.
Evergrande first entered public crisis in 2021 and defaulted on obligations before attempting an offshore debt restructuring plan. The business now appears to be on life support.
Investors worry that distress in China’s vast property sector could be contagious. Other major developers, including Country Garden, have also struggled to service debt, and the real estate industry—estimated to represent up to 30% of China’s GDP—remains in dire need of government support.
U.S. Treasury yields
U.S. Treasury yields have climbed, drawing investors away from riskier assets like cryptocurrencies and toward safer savings instruments. As the Federal Reserve steadily raised interest rates last year to a target above 5%, bond yields rose in tandem.
Strong U.S. economic data has pushed yields higher this week amid expectations of further rate hikes. The 30-year U.S. Treasury yield is at a level not seen since 2011. Attractive, secure yields on Treasuries reduce the appeal of equities and crypto assets.
Price outlook for Gnosis and Augur
Gnosis is up about 0.2% while Augur has gained roughly 1% after a generally weak week. Over the past seven days Gnosis fell about 8.8% and Augur declined about 11.7%.
Daily price chart of Gnosis
After bouncing off the $97.60 support level, Gnosis (GNO) is expected to test resistance at $104.75. That outlook depends on whether the current daily candle closes above the lower Bollinger Band line.
Daily price chart of Augur
Augur appears to have moved into consolidation after erasing most gains captured on July 19–20. Key levels to watch are support at $0.3246 and resistance at $2.1844. If REP breaks above the upper Bollinger Band, it could test $2.1844; conversely, a close below the lower band could push it toward support at $0.3246.
Prediction market tokens, including Chancer, are expected to see continued price interest as popular sporting events—such as the English Premier League and the U.S. MLS—draw more engagement and betting liquidity.