18th August 2023
The price of Bitcoin falls sharply after rumors appeared on the WSJ yesterday night that SpaceX had sold its entire investment in the cryptocurrency, worth $373 million.
Cryptocurrency market sentiment has been quite soft for some time and volatility has remained at its lowest levels in 7 years. As expected, the period of consolidation and uncertainty ended with a rebound in volatility. Bitcoin price plunged to close to $25,000 on a flurry of negative news.
- The strengthening that the dollar experienced yesterday weakened Bitcoin, which began to lose rapidly during the Wall Street session, in a wave of general risk aversion.
- A report in The Wall Street Journal indicated that Elon Musk’s SpaceX had liquidated a $373 million worth of BTC stake, and it came with a panicked reaction in the crypto market, even though Bitcoin had already been losing and was trading around $27,500. at the time of the news.
- At the same time, there are analysts who point out that there is currently no sure evidence of a Bitcoin sale by SpaceX, and the WSJ report, in fact, speaks of a “reduction” in the value of BTC held by Musk’s company in 2022.
- The SEC has delayed its decision on Cathie Wood’s Ark Invest bitcoin ETF, while it waits to decide on other applications such as BlackRock’s.
- At the same time, the SEC received approval from the authorities to appeal the case against Ripple Labs, which caused the Ripple cryptocurrency to drop nearly 20% in just a few hours.
- Liquidations of crypto market bull positions have already amounted to more than $1 billion, the largest wave of bull liquidations since June 2022, when the price of Bitcoin fell to $17,000.
Looking at the Bitcoin chart, the price dipped after it dipped below the 100 EMA average (blue line on the chart). However, it is worth noting that the discount was stopped at the key support level, as a result of the previous lows. If it holds at the $25,250 level, it is not ruled out that it will go higher again. On the other hand, if the price falls below $24,750 today, the downside could be even bigger.
Bitcoin D1 interval. Source: xStation
Bitcoin market analysis on behalf of Hani Abuagla Senior Market Analyst at XTB
