On Thursday evening, Bitcoin encountered a substantial decline as it tumbled by as much as 9%, settling just above the $26,000 mark. Coin Metrics data confirms this downward trend, with the cryptocurrency’s latest trading value recorded at $26,593.68 – marking an overall decrease of more than 8%.
The drop in Bitcoin’s value occurred several hours after The Wall Street Journal disclosed that SpaceX, under Elon Musk’s leadership, had written off approximately $373 million from their bitcoin assets throughout both 2021 and 2022. Furthermore, the article highlighted that the aerospace company had also divested its holdings in this virtual currency.
According to Ryan Rasmussen, a researcher at Bitwise Asset Management, this minute-by-minute selloff in bitcoin is exceptionally brutal and unprecedented. The prevailing belief is that it is being driven by Elon Musk’s SpaceX. Rasmussen emphasized that this sudden and significant decline is myopic in nature and primarily influenced by retail investors.
In 2022, Tesla, under the leadership of CEO Musk, revealed that it had sold approximately 75 of its bitcoin assets following a $1.5 billion investment in the primary digital currency. Throughout his career, the billionaire executive has consistently expressed his strong support for cryptocurrency.
According to a recent study, Musk’s references to specific altcoins on X, the social media platform previously known as Twitter, have resulted in an increase in the values of those digital currencies. During The B-Word conference in 2021, Musk had also stated that he would potentially support the price of bitcoin but would not sell his holdings if its value were to decline.
Following the release of the minutes from its July policy meeting by the Federal Reserve, Bitcoin faced mounting pressure and experienced a significant decline during Thursday’s trading session, reaching its lowest point in nearly two months.
Source: https://www.cnbc.com/2023/08/17/bitcoin-abruptly-tumbles-9percent-to-just-over-26000-late-thursday.html
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