Bitcoin took an unexpected nosedive, plummeting by a staggering 9% late on Thursday evening, bringing its value to just a little over $26,000.
This digital currency, known as Bitcoin, experienced a sharp decline on Thursday night, dropping a significant 9% and landing at slightly over $26,000.
As per the data from Coin Metrics, the latest trade for this cryptocurrency stood at $26,593.68, showing a substantial decrease of over 8%.
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The drop in Bitcoin’s value occurred several hours after The Wall Street Journal reported that SpaceX, led by the enigmatic Elon Musk, marked down the worth of its Bitcoin assets by a combined sum of $373 million over the course of 2022 and 2021. Additionally, the report revealed that the space exploration company had actually sold off its virtual currency holdings.
In the words of Ryan Rasmussen, a researcher at Bitwise Asset Management, “This is one of the most brutal minute-by-minute selloffs we’ve seen in the history of bitcoin.” He shared his perspective with CNBC, suggesting that the prevailing speculation pointed toward an Elon Musk and SpaceX-driven selloff. Rasmussen highlighted that this recent and striking fall seems to be driven by short-sightedness and primarily fueled by individual retail investors.
Looking back to 2022, it was Tesla, an enterprise also under Musk’s leadership as CEO, that announced divesting around 75% of its Bitcoin assets after initially investing a hefty $1.5 billion in the premier cryptocurrency.
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Elon Musk, the billionaire at the helm, has consistently voiced his support for the world of cryptocurrencies. An intriguing study indicated that mentions of specific alternative coins by Musk on X, the social media platform formerly known as Twitter, have actually led to an upswing in the prices of those particular cryptocurrencies. In 2021, during “The B-Word” conference, Musk conveyed, “If the price of bitcoin goes down, I lose money. I might pump, but I don’t dump.”
Bitcoin had already been facing pressure earlier, with the situation intensifying following the Federal Reserve’s release of minutes from their July policy meeting. During Thursday’s trading session, this cryptocurrency spiraled to its lowest point in nearly two months