The Bitcoin price crash: What caused it?
The Bitcoin price crashed past its support at $29k in the last 24 hours, sinking to $26k. Many believe that the reason behind Bitcoin’s crash is SpaceX, which sold the entirety of its stake in Bitcoin. Reports say that SpaceX wrote down Bitcoin’s value by $373 million last year. Musk-led companies have had a similar impact on Bitcoin in the past. Now, SpaceX sold off the entirety of its stake, and Bitcoin dropped by over 7% in response.
Is SpaceX responsible for the crash?
According to some professional traders, the market structure and recent liquidations caused the price to crash rather than a fundamental catalyst. The market has been illiquid and flat for too long, creating conditions for sudden movements. Some also suggested that the crash came in response to China Evergrande’s bankruptcy filing. However, this theory also encountered skepticism.
How did Bitcoin react?
Bitcoin’s price dropped from $29k to $28.6k on August 17, followed by a further drop to $26,289. The coin briefly bounced back but faced rejections and is currently stabilizing at around $26,241. Some holders are buying the dip in anticipation of a price recovery in the coming days.
Wall Street Memes: A safe crypto option amidst the crash
While Bitcoin is experiencing intense volatility, many are turning to the only safe cryptos still in their presale phases. The most significant option on the market right now is Wall Street Memes (WSM). The presale has raised over $25.1 million by selling the WSM token, and there are still two more phases before the presale ends in late August.
Hot Take: Bitcoin’s crash highlights the need for diversification
The crash in Bitcoin’s price serves as a reminder to crypto investors to diversify their portfolios. Relying solely on one cryptocurrency can be risky, as demonstrated by the impact of SpaceX’s sell-off. Exploring safe alternatives like Wall Street Memes may provide more stability and potential for growth in times of market volatility.
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