Bitcoin (BTC) experienced a sudden and significant drop of 8% in less than 10 minutes, causing its price to temporarily dip below $26,000. This decline came after a series of downward price movements over the past few days.
At 9:30 pm UTC time on August 17th, BTC was trading around $27,600. However, it quickly plummeted by over 8% and reached $25,320 at the time of writing, as reported by CoinGecko. While most exchanges show the dip to the low $26,000 region, Bitfinex witnessed BTC going below $25,000.
The exact cause of this sudden drop remains unclear. However, two significant events might have played a role in this decline. Firstly, SpaceX, the American aerospace manufacturer and space transportation company founded by Elon Musk, recently sold $373 million worth of BTC. These bitcoins were acquired by SpaceX during the years 2021 and 2022. Secondly, China’s Evergrande Group, one of the country’s largest real estate developers, filed for chapter 11 bankruptcy in New York. The combination of these events might have contributed to market uncertainty and triggered the price drop.
As a result of this decline, Bitcoin’s market capitalization dropped below $500 billion, marking the first time since June 16th. Additionally, the price hit lows not seen since June 20th, indicating a bearish sentiment in the market.
Despite this recent dip, Bitcoin’s overall performance this year remains impressive. Since the beginning of 2023, BTC has surged by an incredible 60%, starting the year at around $16,550. This showcases the resilience and growth potential of the leading cryptocurrency despite short-term market fluctuations.
It is important to note that this is a developing story, and further details are expected to emerge. As more information becomes available, this article will be updated accordingly.
In conclusion, Bitcoin experienced a sudden and substantial drop in its price, falling below $26,000. Possible contributing factors include SpaceX’s sale of $373 million worth of BTC and China’s Evergrande Group filing for bankruptcy. Despite this decline, Bitcoin’s performance throughout 2023 has been remarkable, with a 60% increase since the beginning of the year. As the situation continues to develop, more information will be provided to shed light on the factors behind this market movement.
Source link
