We are all aware of the Elon Musk effect in the cryptocurrency world. Now there is news from Musk’s company SpaceX. The company’s disposal of $373 million worth of cryptocurrencies fell like a bombshell on the agenda. With this news, the value of Bitcoin fell below $ 27,000. Concerned about a potential bearish, the market is looking at the coin’s resistance and support levels. Here’s a closer look at Bitcoin’s recent challenges and the impact of SpaceX’s significant sale.
SpaceX’s strategic cryptocurrency Bitcoin sale
Bitcoin, the world’s leading cryptocurrency, fell below the $27,000 level. The drop comes after aerospace giant SpaceX was revealed to have recently sold Bitcoin worth approximately $373 million, which the company had accumulated between 2021 and 2022. Details of the sale have not been disclosed by SpaceX. However, this move marks a strategic shift in the company’s financial strategy.
SpaceX had a total of $373 million in Bitcoin assets on its balance sheet over the past two years. Accordingly, this significant amount was among the company’s expenditures, which reached approximately $5.2 billion in 2022. This financial allocation was for property acquisition, equipment, research and development. It is worth noting that SpaceX CEO Elon Musk made the company’s Bitcoin holdings public in 2021. In the same period, Tesla, another company led by Musk, also announced its plan to invest $ 1.5 billion in Bitcoin. These high-profile endorsements contributed to the meteoric rise of the cryptocurrency Bitcoin. On the other hand, it had increased its value above its all-time high of $43,000.
Bitcoin’s recovery and analyst predictions
Despite the recent turmoil, the price of the cryptocurrency Bitcoin is showing signs of recovery. Accordingly, it is currently trading at around $26,800.74. Also, the last 24-hour trading volume is at $26,151,285,776. Maintaining its top spot on CoinMarketCap, Bitcoin has a market cap of $511,783,802,814.
Analyst CredibleCrypto has a positive outlook amid market uncertainty. He predicts that this drop could mark the bottom for the price of the cryptocurrency Bitcoin. According to his analysis, Bitcoin’s long-term uptrend remains intact. It also points to a bullish outlook in the macro. On the other hand, he highlights that this event could potentially trigger a bullish price action following a major liquidation event.
Continuing challenges of the cryptocurrency Bitcoin amid market changes
When we look at Kriptokoin.com, while Bitcoin is experiencing its latest price drop, the market is discussing the impact of SpaceX’s Bitcoin sale. On the other hand, he is closely observing the effects of this on the trajectory of the cryptocurrency.
Literally took more liquidations than we got during the FTX collapse to flush us this low and we couldn't even break HTF bullish market structure. $BTC didn't go below 26k on most spot exchanges- went lower on perps/leveraged products because of the liquidations.
Right inside… https://t.co/lKJh4M0W7E pic.twitter.com/Vdxr0Zd5Zv
— CrediBULL Crypto (@CredibleCrypto) August 17, 2023
Given the support and resistance levels, the cryptocurrency community continues to adapt to developments that could potentially reshape Bitcoin’s journey in the near future.
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