Elon Musk’s SpaceX and Bitcoin Crash: What You Need to Know
Elon Musk’s SpaceX is being blamed for the recent crash in the crypto market, resulting in over $1 billion in liquidations. The crash coincided with the release of a report by the Wall Street Journal (WSJ) that revealed SpaceX’s financials. The report stated that SpaceX had written down the value of its Bitcoin holdings by $373 million and had sold some of its cryptocurrency. However, exact figures and timing were not provided.
Main points:
- SpaceX wrote down the value of its Bitcoin holdings by $373 million and sold some of its cryptocurrency.
- Elon Musk has previously confirmed that he owns Bitcoin personally and that SpaceX also holds some, but the exact amounts are unknown.
- Tesla, Musk’s car company, purchased $1.5 billion worth of Bitcoin in February 2021 but has since sold most of it.
- Musk’s influence has had an impact on the price of Bitcoin and other cryptocurrencies in the past.
- Some believe that the Chinese property giant Evergrande’s bankruptcy filing may also have contributed to the crypto crash.
Musk’s tweets and actions have often affected the price of Bitcoin and Dogecoin. His announcement that Tesla would no longer accept Bitcoin as payment caused a 50% drop in its price. The recent crash may also be related to the SEC’s lawsuit against Binance and Coinbase earlier this year. On-chain analysts had predicted the volatility spike, noting that investors seeking profit in the $29,000 to $30,000 range had already done so.
Hot Take:
Elon Musk’s influence on the crypto market is undeniable. His actions and statements have the power to move prices significantly. While some may view this as market manipulation, others argue that it is simply a reflection of the decentralized and volatile nature of cryptocurrencies. Regardless, investors need to be cautious and mindful of the impact that influential figures like Musk can have on their investments.
By
By
By
By