The reasons aren’t entirely clear, but the bottom line is this: Bitcoin suffered a sharp drop in price last night, falling more than 7% after its value plummeted in just 10 minutes. The pullback pushes the cryptocurrency back to its two-month low of just over $26,000, though it’s still up almost 60% so far this year.
Among the arguments being considered to explain the drop are the continuity of rate hikes by the Federal Reserve, the rise in bond yields or the crisis in China, but the argument that is gaining ground has to do with information published by The to do Wall Street Journal.
The American newspaper published on Thursday that SpaceX, Elon Musk’s aerospace company known for its rocket launches, reduced the value of its Bitcoin reserves acquired between 2021 and 2022 to $373 million and then sold them. This lack of confidence in the tycoon would have caused a moment of panic in the market, although the price stabilized after this sudden collapse.
Until not so long ago, Musk was viewed by cryptocurrency advocates as one of their own. In addition, they also harbored hopes that some of the wealth and influence of the controversial billionaire owner, owner of and with them, would make the price go up.
For a while it seemed so. Musk even went so far as to allow Tesla vehicles to be purchased with bitcoin in the United States in 2021, but after a few months he changed his mind in one of his usual stumbling blocks, prompting a flight from investors who subsequently landed on bitcoin were his initial decision to accept them.
To this correction we must add his usual flirting with meme cryptocurrencies, which he has rebounded in value at will on numerous occasions simply by posting them in his X account to his tens of millions of followers (153 million today). mentioned, sparking a wave of speculation. Buys and sells in seconds.
After hitting its all-time high of nearly $70,000 in November 2021, Bitcoin plummeted to $16,000 and entered a complicated phase that its proponents call crypto winter. Although it’s up a bit today, it barely retains a third of its peak and has been hit by the complaints filed by the U.S. Securities and Exchange Commission (SEC) last June against Binance and Coinbase, the two main trading platforms and sale these assets.
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