Bitcoin’s recent 8% price drop in a mere 10 minutes has sent shockwaves through the cryptocurrency community
The price of Bitcoin, the flagship cryptocurrency, experienced a sharp decrease, dropping 8% and falling below the $26,000 mark for the first time since June.
Some attribute the sudden plunge to a social media post by Bitcoin Magazine, which claimed that Elon Musk’s SpaceX had sold all of its $373 million worth of Bitcoin. The post went viral, generating over 2.4 million views. However, subsequent clarifications have raised doubts about the accuracy of this claim.
The Wall Street Journal, cited as the source of the news, had in fact reported that SpaceX “wrote down the value of Bitcoin it owns” last year (as noted by a Community Note next to the post).
This means that the company had not recently offloaded its Bitcoin holdings, contrary to the narrative presented by Bitcoin Magazine.
The misleading information led to a wave of reactions, with social media users like Autism Capital accusing the magazine of spreading “FUD” (fear, uncertainty, doubt) and damaging its credibility.
The misinformation about SpaceX’s Bitcoin sale might have played a role in the price drop, but other indicators suggest that a decline was already on the horizon. Moreover, it is worth noting that Bitcoin started dropping sharply even before the SpaceX news was posted on X.
Analysis from CryptoQuant.com highlighted several factors that were signaling a potential price decrease. These included a buildup of short positions in the futures market since mid-July, a period of low Bitcoin demand in the US, increased spending activity by Bitcoin whales, and a prevailing negative sentiment among traders.
It’s worth noting that Tesla, another company led by Musk, also sold a significant portion of its Bitcoin holdings last year, but it didn’t result in such a steep price drop. Hence, the SpaceX news was extremely unlikely to have a major impact on the market.