The recent report about SpaceX’s Bitcoin write-down, published in the Wall Street Journal, has caused confusion within the cryptocurrency community. Many people were unsure whether SpaceX had sold its entire Bitcoin holdings or if they had simply reduced their exposure to Bitcoin by $373 million. Various social media outlets reported different interpretations of the report, with some claiming that SpaceX had indeed sold all of its BTC holdings, while others were unable to confirm the amount based on the wording of the report.
The confusion surrounding SpaceX’s Bitcoin holdings can be traced back to 2021 when Elon Musk announced that both Tesla and SpaceX held Bitcoin on their balance sheets. While Tesla’s Bitcoin holdings were made public, there were no estimates available for SpaceX’s BTC holdings, leading to ongoing speculation. It should be noted that Tesla had previously held $1.5 billion worth of BTC, purchased during the bull market, but sold 72% of its holdings in Q2 of 2022.
The claims of a write-down by SpaceX were considered to be one of the main factors behind the $2000 drop in the price of Bitcoin. However, some have denied that it was a direct cause. Elon Musk, who has not addressed the issue directly, became a target of Bitcoin proponents who questioned his strategy of buying high and selling low. Some even referred to it as market FUD (fear, uncertainty, and doubt).
One Reddit user suggested that Musk might be running out of cash across all of his companies and speculated that he might sell “all of his Bitcoin and doge within the next 6 months.” This added to the speculation and uncertainty surrounding SpaceX’s Bitcoin holdings. Meanwhile, users on various social media platforms criticized Musk for having “paper hands” and linked the BTC write-down to SpaceX’s ambition of becoming a payment giant.
Amidst all the confusion, Bitcoin proponents advised traders to hold onto their BTC and not be swayed by market FUD. They emphasized the importance of patience and not getting caught up in speculation.
At the time of writing, Bitcoin was trading at $26,433, having overcome the $26,000 resistance. The price of BTC experienced a 9% decline the previous night, which also led to a significant drop in the value of other altcoins.
Overall, the report on SpaceX’s Bitcoin write-down has left many in the crypto community perplexed. The lack of clarity regarding the exact details of SpaceX’s BTC holdings has fueled speculation and uncertainty. As the situation unfolds, it remains to be seen how the market will react and how Elon Musk will address the issue. In the meantime, Bitcoin proponents urge traders to remain patient and focus on the long-term potential of the cryptocurrency.
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