In the evening of August 17, the price of the first cryptocurrency fell sharply from $28,000 to $25,000, recovering slightly to the current moment. Community participants tried to explain the situation.
EToro analyst Josh Gilbert speculated that the drop could be related to the sale of some or all of the bitcoins by Elon Musk’s SpaceX for $373 million.
“Anytime there’s a big name in the industry selling bitcoin, especially someone as influential as Ilon Musk, it’s going to put pressure on the price,” the expert wrote.
In his opinion, another reason for the decline in the rate of digital gold may be a rapid change in market sentiment against the backdrop of a key rate cut by the US Federal Reserve.
CoinMarketCap market analyst Tina Teng believes the main reason for the bitcoin sell-off is the recent rise in government bond yields. A strengthening in the performance of securities usually indicates a reduction in liquidity in the broader market, she said.
In addition, Teng added that the asset’s exchange rate could have been indirectly affected by the crisis of Chinese real estate developer Evergrande, which filed for bankruptcy.
Markus Thielen, head of research at Matrixport, noted that the risk of Chinese yuan devaluation played a significant role in the first cryptocurrency’s selloff.
“In August 2015, the last time China devalued the yuan, bitcoin prices fell 23% for two weeks. Before a more meaningful rally began, the asset ended the year at +59% of its devaluation level,” explained Thielen.
TheFlowHorse trader suggested a big sell-off of one of the major market participants. The expert called the current situation “pure speculation”. He believes that the unknown whale could have sold its asset holdings after Valkyrie applied for the Ethereum-ETF futures ETF.
According to CoinGlass, $265 million in digital gold positions have been liquidated in the last 24 hours.