Key Takeaways
- Bitcoin dropped toward $26,000 amid Elon Musk’s SpaceX hoopla.
- The company unloaded its stash in 2022, but the FUD accelerated nonetheless, causing a selloff wave.
- Will BTC markets rebound?
YEREVAN (CoinChapter.com) — Bitcoin price plunged toward $26,000 on Aug 18, hitting its lowest level in two months amid a “fictional” Elon Musk-led BTC dump and increasing capital flow into exchanges.
Did Elon Musk’s SpaceX dump its Bitcoin holdings or not?
On Aug 17, X.com, formerly known as Twitter, was flooded with FUD about one of Elon Musk’s companies, SpaceX, dumping $373 million worth of Bitcoin holdings.
However, according to the Wall Street Journal, SpaceX wrote down the value of Bitcoin it owned LAST YEAR, meaning the recent price dump is nothing more than a reflection of the overall tension in the market.
Also, it speaks to some investors’ inclination to discard digging through the facts before making a trading decision.
A popular crypto analyst Scott Melker ironically blamed the “blocked Suez Canal” for the price dump and the Evergrade crisis, reflecting the level of distrust and strain among traders.
Bitcoin amid the sharpest 2023 drop regardless of SpaceX FUD merit
As FUD spreads fast and snowballs, the influx of BTC onto exchanges grew. According to the chart below, around 5,500 BTC coins were deposited onto exchanges in the previous three days, possibly causing the price avalanche.
Moreover, according to on-chain data provider Santiment, whale activity shot up regardless of the SpaceX dump being old news.
The dust has far from settled after crypto markets had one of its sharpest price drops of 2023. We are seeing a large amount of $1M+ BTC transactions, indicating whales are very active on this dump. But the amount of large wallets is not falling.
commented Santiment.
Will the selloff continue?
Given the absence of merit behind the recent FUD, it might end soon enough. The bulls are currently focused on maintaining the support at $26,400. They lost the 200-day exponential moving average (EMA-200) support on Aug 17. However, consistent buying pressure could offset the damage.
However, macro risk factors persist. The US market is experiencing a liquidity crunch, which, along with the spiking Treasury Yields, could dampen attempts to revive the risk-on markets.
If Bitcoin loses the current support, it could dump to the next available support at $25,000 by the end of the quarter. However, the Fed’s upcoming meeting in early September will shed more light on the market expectations.
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