In an unexpected turn of events, the cryptocurrency market plummeted on Thursday night as word came that Elon Musk’s SpaceX had made a key choice. The private space exploration business, recognized for its ambitious missions and inventive undertakings, said that it has sold all of its Bitcoin assets. This surprise action shook the market, affecting not just Bitcoin but also associated equities of significant firms like Coinbase, Marathon Digital, and Riot Platforms.
The Wall Street Journal obtained documents that revealed SpaceX’s strategic move. The decision to liquidate the company’s Bitcoin assets was made after thorough thought. SpaceX followed in the footsteps of Tesla, which had sold off 75% of its Bitcoin reserves the previous year. The company’s holdings, which were formerly optimistically valued, have been written down in value during the last few years.
Bitcoin Price Drop and Recovery
The market’s first reaction to SpaceX’s announcement was a significant decline in the price of Bitcoin. On Thursday evening, the cryptocurrency’s value dropped to as low as $25,392.05. However, it wasn’t long before there was a modest recovery, with the price rising to roughly $26,600. Despite this, the comeback was followed by a 7% reduction in price when compared to the price just 24 hours earlier.
Interestingly, Bitcoin was already on a downward trend before the SpaceX news broke. A higher US dollar and a general sense of risk aversion in trade have also contributed to this drop. With these current headwinds combined with the SpaceX revelation, the bitcoin market was dealt a double punch.
The Ripple Effect on Bitcoin Stocks
The consequences of SpaceX’s decision were not restricted to cryptocurrencies. Bitcoin-related equities reacted quickly, underlining the interdependence of today’s financial scene.
During Thursday’s session, Coinbase, one of the most renowned bitcoin exchanges, fell 4.35%. Similarly, Marathon Digital, a corporation heavily involved in bitcoin mining, had its stock value plummet by 9.3%. Riot Platforms, another bitcoin mining company, was also hit hard, with its shares dropping 10.6%.
