On Friday, market participants were attempting to piece together what sparked the sudden selloff while also trying to determine how low crypto might go after BTC briefly dipped below $26,000.
"The documents also show SpaceX wrote down the value of bitcoin it owns by a total of $373 million last year and in 2021 and has sold the cryptocurrency," it read."Tesla has taken a similar approach with its bitcoin holdings. Musk has posted about cryptocurrencies frequently over the years." “There might be multiple reasons that explain this big selloff with Bitcoin, and I’m not certain it has anything to do with news that SpaceX might – emphasis on might – have sold off its BTC balance,” he said. “Basically, volumes had contracted significantly, and we haven’t been seeing much new retail participation in the space. If anything, this event seems to be largely driven by a flushing out of leveraged positions, which happens periodically with BTC and in rather dramatic fashion.
Markus Levin, co-founder of XYO Network, told Kitco News that he doesn’t see a floor for BTC in the near term. “I suspect that Bitcoin could fall further because the economic situation globally is just so precarious. China appears to be in a deep recession and interest rates in the United States are still relatively very high.