Bitcoin & All Altcoins Drops Significantly
The world’s most popular cryptocurrency Bitcoin drops to a new two-month low, dipping below $26K and over $1 Billion in crypto market liquidations.
On Friday, Philippine time, Bitcoin fell 7.5% at $26,432, one of the biggest one-day drops since November 2022 when top exchange FTX collapsed.
This is not the first time that the number one crypto has dropped to a two-month low as it slipped to $26,172 during Asian trading hours today, Friday, August 18, 2023, its lowest since June 16, 2023.
Aside from Bitcoin, all the other Top 10 non-stablecoin cryptos logged losses, and some analysts say that it’s because of the depreciation of the Chinese Yuan and the bankruptcy of Chinese property giant Evergrande.
Some reports also suggest that global markets have been hit by a wave of selling, with Wall Street main indexes closing lower on Thursday and Asian shares heading for third-week losses over concerns about China’s economy.
According to financial experts and analysts, there are also some possibilities that the dips in Bitcoin prices were attributed to a Wall Street report that Elon Musk‘s SpaceX sold its Bitcoin holdings after writing the value down by $272 million.
Twitter‘s big boss and owner, Elon Musk, is influential among crypto enthusiasts, and Bitcoin prices have previously moved in response to his tweets.
Global Markets strategist at eToro, Ben Laidler, said that the SpaceX reports were the “immediate catalyst” for the sell-off of the first crypto ever introduced.
“The broader diver is that crypto assets are not immune to the deepening risk-off setting pressure seen across all asset classes,” Laidler added.
The forefather of all cryptos had been hovering steadily close to $30,000 in recent months, gradually recovering this year after dropping sharply in 2022 when various crypto firms collapsed.
All the crypto markets were boosted in June 2023 by BlackRock applying to launch a spot Bitcoin exchange-traded fund (ETF) in the United States.
The fall has taken Bitcoin’s market cap below $500 billion for the time since June 16, 2023. Despite the dip, BTC is still up 60% since it entered at about $15,550 in 2023.
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Source: Reuters
