Overnight, the value of Bitcoin dropped by a huge amount, surprising many investors and even experts. As it turned out, there are many reasons for the phenomenal collapse. Someone from the USA, someone from China - even Elon Musk is to blame.
The last 24 hours have been marked by Bitcoin’s peak after a long period of stability. The most popular cryptocurrency, BTC, fell to around $25,000 on the night of August 17-18, from its previously held level of just under $30,000.
Bitcoin is currently trading at $26,440, which is over 7% of the daily decline. (as of 12:00). Every week, the most famous of the cryptocurrencies loses almost 10 percent. values. Ethereum lost 5.8% on the day. on values. Weekly losses are 8.7 percent.
Reasons for the collapse of bitcoin - that’s what affects the BTC rate
The fundamental question remains why, after an extremely long and stable “vacation”, BTC suddenly returned with a huge drop. Btihub experts name at least a couple of reasons.
The first reason is the very negative sentiment in the US stock market. There, the fall in shares was caused by the publication of FOMC Minutes, a report from the July meeting of the Federal Open Market Committee. There are serious concerns that the US Federal Reserve will continue its restrictive monetary policy.
Meanwhile, the huge Chinese construction company Evergrande has announced another step in bankruptcy. The company is currently seeking bankruptcy protection in the US to preserve its assets. The insolvency of the giant has a huge impact on the US stock market.
Only bad news from the cryptocurrency market - Elon Musk sells tokens, SEC sues Ripple
Cryptocurrencies often mirror New York Stock Exchange crises one to one. At the same time, things have not been going well in the digital currency market itself in recent days.
The US Securities and Exchange Commission (SEC) has been waging war against tokens and companies selling them in the US for months. Recently, the SEC received permission to appeal the court decision in the SEC v. Ripple case.
The first decision was announced in favor of the cryptocurrency company, but now the case will return to the court. This is a potential precedent that would allow numerous crypto companies to be delegated as unregistered securities brokers.
The last pin is the news about the recent act of Elon Musk. The billionaire is one of the most famous supporters of cryptocurrencies. However, according to classified documents, he had to sell the entire bitcoin reserve owned by his company SpaceX, which is worth about $373 million. With a similar move, Musk caused the collapse of BTC in the summer of 2021. While the WSJ sales report is currently being questioned by experts, investors appear to have reacted to it as if it were true.
Source: Wprost
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