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SpaceX Sells Bitcoin as Market Crashes — Is Elon Musk Behind the Fall?

Last Updated August 18, 2023 3:53 PM
Omar Elorfaly
Last Updated August 18, 2023 3:53 PM

Key Takeaways

  • Liquidations lead Bitcoin to a three-month low
  • Elon Musk’s SpaceX was reported to have sold over $300 million in crypto
  • This week’s decline erases gains made after BlackRock’s announcement 

Bitcoin prices plunged today, August 18, marking the biggest decline in the token’s value in three months. Reports  claim the plunge is due to a mass liquidation of the token, reaching over $1 billion in a single day.

At the same time, SpaceX, one of Elon Musk’s flagship companies, sold over $300 million in crypto . While reports did not confirm when the company’s liquidation took place, it definitely contributed to the significant decline in the token’s price.

New Low For Bitcoin

Bitcoin prices are prone to price changes caused by news headlines and announcements from key market players such as Elon Musk.

On August 18th, Bitcoin dropped by over $3,000 in value, going from over $28,000 to just over $25,000 in a single day. The token has since recovered to over $26,000, but the plunge has undoubtedly revived market skepticism regarding the future of digital asset investment.

Bitcoin price trends
Bitcoin sees a sharp $3,000 drop in a few hours.

“With limited catalysts to push Bitcoin higher in the short term, a fall below $25,000 could put bears in charge, and if the rout in global risk assets continues, Bitcoin could face further downside,” reported  Josh Gilbert, market analyst at trading and investing firm eToro.

Musk In The News Again

A Wall Street Journal report  shows that SpaceX, a leading aerospace company run by Elon Musk, sold its Bitcoin holdings and wrote down $373 million in its financial books.

Although the tech billionaire has consistently presented himself as a supporter of digital assets and their potential as payment options.

However, this is not the first time Musk has offloaded a chunk of his Bitcoin deposit. In 2022, Tesla/Musk sold 75% of their Bitcoin stash for $936 million, realizing a profit of $128 million.

Shortly after Tesla shocked the crypto market, it invested $1.5 billion  in Bitcoin. 

At the time, Tesla reported  that it “invested an aggregate $1.50 billion in Bitcoin under this policy and may acquire and hold digital assets from time to time or long-term. Moreover, we expect to begin accepting Bitcoin as a form of payment for our products in the near future.”

The purchase and its announcement led Bitcoin prices to rise by $3,000.

 

SpaceX and Elon Musk did not immediately respond to a request for comment.

Gains Lost

Bitcoin had enjoyed a surge in pricing after BlackRock announced it would apply for a Bitcoin spot ETF with the United States Securities and Exchange Commission (SEC). The news sent the token up in price by over $4,000. Consequently, plenty of adjacent financial institutions, including other asset management companies, immediately applied for a similar ETF, marking notable optimism in the market.

Unfortunately, the SEC has yet to accept any spot ETF applications, although applicants have gone above and beyond to satisfy the regulating body’s terms, including surpassing the ‘anti-money laundering’ concern by naming Coinbase as a surveillance partner on their applications.

With the new decline in Bitcoin’s price, not only did Bitcoin lose the price gains made from BlackRock’s announcement, but, surely, investors are likely to be more wary of investing in the digital asset, fearing another bullish liquidation.

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