BTC struggles at $26,000 after SpaceX disposes of its BTC holdings

1. Bitcoin’s Price Stability is Put to the Test as SpaceX Sells Off Holdings

As a result of SpaceX’s decision to sell its Bitcoin assets, which was spearheaded by Elon Musk, the price of Bitcoin (BTC) is currently struggling to stay above the $26,000 mark. This decision by the world’s largest manufacturer of spacecraft has caused turbulence in the market, adding to the continued difficulty the cryptocurrency faces in maintaining a stable price.

2. Rising 1 BTC ownership counters bearish sentiment

Surprisingly, data from Glassnode shows an important trend despite the market’s overall gloomy mood. With 1,015,299, the total number of cryptocurrency wallets holding at least one Bitcoin has reached a new all-time high (ATH). This phenomena has been happening since late 2021, which is also when the price of Bitcoin reached a record high of $68,790.

3. BTC Short-Term Traders Seen During Recent Price Drop

The recent decline in the price of Bitcoin has prompted an increase in short-term traders. According to Glassnode’s data, the amount of Bitcoin supply that is actively exchanged between a week and a month has decreased to a 30-day low of 680,353.028 BTC. This decrease reflects increased trading activity among short-term investors following SpaceX’s decision to sell its BTC holdings.

4. The sale of SpaceX’s Bitcoin holdings has an impact on market dynamics.

A well-known aerospace business, SpaceX, sold its Bitcoin assets in a move that sent shockwaves across the cryptocurrency community. The revelation of their decision coincided with a surge in cryptocurrency liquidations above the $1 billion threshold, accumulating an estimated $373 million in Bitcoin throughout 2021 and 2022. The fact that a significant 83% of these liquidations were associated with long holdings is noteworthy and highlights the effect of SpaceX’s action on market sentiment.

5. The current state of BTC and its market dynamics

At the time of writing, Bitcoin’s price had dropped $25,990, or 0.3%, during the previous 24 hours. Additionally, BTC’s 24-hour trading volume, which was previously $9.4 billion, is now down 2.5%. On August 20, Bitcoin reached a high of $26,260 after a brief climb.

Despite the difficulties it is currently facing, Bitcoin’s market valuation is still above the $500 billion threshold, with a commanding market share of 48%.

Bitcoin’s success is highlighted by its tenacity in the face of market-shaping events in a world characterised by both encouraging trends and worrisome volatility. The ongoing story of Bitcoin’s function and value within the larger financial landscape is influenced by a number of interrelated events, including SpaceX’s BTC disposal, the rise in the number of 1 BTC owners, and the dynamics of short-term trading.

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