Bitcoin powerfully declines after WSJ rumors that SpaceX sold off entire, $373 mln Bitcoin holding

The sentiment of the cryptocurrency market has been quite weak for quite some time, and volatility remained at its lowest levels in 7 years. As expected, the period of consolidation and uncertainty ended with a spike in volatility. Bitcoin’s price dived to the vicinity of $25,000 on a wave of some negative news. 

• Yesterday’s strengthening of the dollar weakened Bitcoin, which began to lose rapidly during the Wall Street session, on a wave of general risk aversion;
• A report by The Wall Street Journal indicated that Elon Musk’s SpaceX had liquidated a BTC holding worth $373 million, was met with a panic crypto market reaction, although Bitcoin had already been losing and was trading around $27,500 at the time of the news;
• At the same time, on-chain analysts point out that there is currently no evidence of a Bitcoin sale by SpaceX, and the WSJ report in fact spoke of a ‘wrote-down’ of the value of BTC held by Musk’s company in 2022;
• At the same time, the SEC has received court approval to appeal the case against Ripple Labs, leading to a dynamic near-20% discount of the Ripple crypto in just a few hours
• Liquidations of long crypto bulls positions have already amounted to more than $1 billion, according to onchain data, the largest wave of bull liquidations since June 2022, when Bitcoin’s price fell to $17,000.

Looking at BITCOIN chart, the price took a dive after the price fell below the EMA 100 average (blue line on the chart). Nevertheless, it is worth noting that the discount stopped at the level of a key support level, resulting from previous lows and the lower limit of the 1:1 system. If the level of USD 25250 is maintained, a return to growth is not excluded. On the other hand, if the price breaks below $24750 today, the downward movement may gain strength. 

Bitcoin interval D1. Source: xStation5