Bitcoin is currently experiencing a significant drop due to the impact of Elon Musk’ s actions. Elon, through his action of selling all of his bitcoin holdings through SpaceX, as reported by The Wall Street Journal, has created turmoil in the market. This factor is believed to have caused the price of bitcoin to plummet in the past few days.
However, Elon’ s role in this cryptocurrency value decline is only part of the story. The sluggish economic conditions in Cina and the possibility of interest rate hikes in the United States have caused turbulence in the crypto market. Nonetheless, don’ t underestimate the influence exerted by Elon.
Informasi from CoinMarketCap reveals that bitcoin briefly touched its lowest tingkat since June 15, 2023, at around$25, 409. The value of bitcoin, the largest market- capitalized digital currency, has dropped by 11. 36% in the past seven days to reach$26, 061. 13 at 12: 17 PM local time.
The Wall Street Journal reported that Elon Musk’ s company, SpaceX, has sold$373 million worth of bitcoin in the past two years, along with all of his ownership in the cryptocurrency.
Since 2021, Elon Musk’ s activities have been a focus of market participants’ attention. Tesla, the electric car company he leads, ignited the cryptocurrency market’ s excitement by accepting payments using digital currency.
When Elon announced this plan in February 2021, the value of bitcoin surged by 15% in a day. Not only that, Tesla also invested$1. 5 billion from the company’ s treasury into digital tokens.
However, the hope that bitcoin would become Tesla’ s official payment currency was merely a jest played by Elon. This plan was later canceled three months later, causing a sharp rise in the price of bitcoin.
Moreover, Tesla’ s ownership of bitcoin also resulted in around$204 million in losses in the company’ s 2022 financial statements.
The fluctuation in bitcoin prices goes hand in hand with the turmoil in the digital currency world. Controversial statements from the Chairman of the U. S. Securities and Exchange Commission( SEC), Gary Gensler, calling it rife with“ fraud, abuse, and misconduct,” have had a significant impact.
In June, the SEC sued the two largest crypto exchanges, Binance and Coinbase, accusing them of violating laws by selling digital tokens without adequate requirements.
This sah action directly affected the decline in cryptocurrency values, as market participants worried about their liquidity. This demonstrates how volatile digital assets can be, even as the trading platforms in question deny the accusations and prepare to defend themselves in court.
Bitcoin is currently experiencing
Additionally, inflation in the United States in July 2023 also increased, raising expectations that the U. S. Federal Reserve( the Fed) would adopt a hawkish stance.
After the Fed’ s benchmark interest rate was raised by 525 dasar points to 5. 25- 5. 5%, stocks and bonds experienced declines. Nevertheless, there is still hope that the Fed will reverse course and reduce its hawkish policies, given the 2% inflation sasaran.
However, there are market participants World Health Organization remain optimistic that the cycle of interest rate hikes will soon come to an end.
When monetary policy is loose, market participants generally seek risky assets like cryptocurrencies. This happens because the value of conventional currencies tends to decline, prompting market participants to look for riskier alternatives.
In addition to the phenomenal Tesla transactions and recent bitcoin buying and selling activities, Elon Musk’ s statements often influence the prices of digital currencies.
For example, DOGE coin shook the market in January 2021. A single tweet from Elon containing a dog image, which is also the symbol of DOGE, caused the price of Dogecoin to spike by 300% in just four hours.
On December 20, 2020, Elon also tweeted a single word:“ Doge.” With that tweet, DOGE trading daya muat significantly increased, from$1, 942 with 9 trades per minute to$299, 330 with 775 trades per minute.
Elon has even faced a$258 billion lawsuit berlebihan allegations of a pyramid scheme or investment fraud. Ironically, he has also shown support for DOGE coin through his tweets.
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