The price of Bitcoin, the most popular cryptocurrency, dropped significantly, falling by 8% and breaching the $26,000 threshold for the first time since June.
A social media article by Bitcoin Magazine, which stated that Elon Musk’s SpaceX had sold all of its $373 million worth of Bitcoin, is sometimes blamed for the abrupt decline. The post received over 2.4 million views after going viral. However, later explanations have cast doubt on the veracity of this assertion.
As stated in a Community Note next to the post, SpaceX “wrote down the value of Bitcoin it owns” last year, according to the Wall Street Journal, which was cited as the news source.
Contrary to the story put out by Bitcoin Magazine, this indicates that the corporation had not just sold up its Bitcoin assets.
Social media users like Autism Capital accused the magazine of spreading “FUD” (fear, uncertainty, and doubt) and undermining its reputation after the inaccurate material sparked a surge of reactions.
Multiple factors
The false information on SpaceX’s Bitcoin sale may have contributed to the price decrease, but other signs point to a decline that was always imminent. Furthermore, it’s important to remember that Bitcoin started falling precipitously even before the SpaceX announcement was announced on X.
Numerous signs that were signalling a likely price drop were analysed by CryptoQuant.com. These included an increase in short positions in the futures market since mid-July, a period of low US demand for Bitcoin, a spike in Bitcoin whale spending, and a general lack of optimism among traders.
It’s important to note that Tesla, another organisation run by Musk, also sold a sizable amount of its Bitcoin assets last year, although the price decrease wasn’t as severe. Therefore, it seemed highly improbable that the SpaceX announcement would have a significant effect on the market.
