CryptoMediaClub
Thursday, July 31, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home Ethereum

Why did Bitcoin drop? Analysts point to 5 potential reasons

18.08.2023
A A
0
126
VIEWS
ShareShare

Elon Musk's SpaceX reportedly selling its Bitcoin (BTC) holdings, the bankruptcy of a Chinese property giant and fears of interest rate hikes have been among the theories raised as to Bitcoin's freak price dip.

On Aug. 18 around 9:35 pm UTC, the price of Bitcoin suddenly plummeted over 8% in a span of 10 minutes, taking with it the wider cryptocurrency market, leaving many in the crypto community scratching their heads.

the fuck was that? pic.twitter.com/Lh2zGXv29n

— Molly White (@molly0xFFF) August 17, 2023

While there appears to be no consensus as to why the markets suddenly dropped, several crypto market analysts have shared their initial theories with Cointelegraph.

SpaceX offloads Bitcoin, interest rate fears

eToro market analyst Josh Gilbert pinned the drop on a report that SpaceX may have offloaded some or all of its $373 million in Bitcoin holdings, which came from an Aug. 17 article from the Wall Street Journal.

“Whenever you have a big name in the industry selling Bitcoin, especially someone as influential as Elon Musk, it will put the price under pressure.”

This would put the sudden price drop around 2.5 hours after the report was published online.

Gilbert said another theory could be the rapid shift in sentiment, due to the broader markets’ expectations of future interest rate hikes from the U.S. Federal Reserve.

“If we also consider some of the weaknesses we’ve seen across global markets — particularly risk assets — over the last few weeks with the expectation that rates will likely stay higher for longer, it was a recipe for a pullback,” Gilbert explained.

“Bitcoin has struggled for a leg higher in the last month, trading in a tight range of between $29k and $30k with little ‘good news’ to push the asset higher, which has only exuberated this sell-off,” he added.

Government bond yields

Tina Teng, a market analyst from CMC Markets shared a different opinion, looking to the recent rise in government bond yields as the root cause behind the sell-off.

Teng explained that increasing bond yields typically shows a reduction in liquidity for the broader market.

“This could be the primary reason that cryptocurrencies sank,” she said.

Additionally, Teng said that while the Evergrande crisis could have an indirect cause on the price of Bitcoin she didn’t believe that it was among the root causes of the decline. “This has more of an impact on sentiment toward the Chinese economy and investors,” she explained.

Whale's selling big

While there were many other news events that could be responsible, pseudonymous derivatives trader @TheFlowHorse told Cointelegraph that the sudden move down could have resulted from a single large actor making a big sell, which then resulted in further pressure on derivatives.

“It was not just a natural cascade. Someone big bailed for a purpose and set it in motion. Spot volume barely compared to perps.”

According to data from crypto analytics platform Coinglass, more than $427 million in Bitcoin long positions were liquidated in the last 4 hours. Over the course of the last 24 hours, there were more than more than $822 million liquidations for traders with open long positions — a bet that the price of crypto assets will move upwards.

More than $427 million worth of Bitcoin long positions have been liquidated in the last 24 hours. Source: Coinglass

Describing much of the explanations for the decline as “pure speculation,” Horse suggested that since the reports of the SEC hinting its approval of an Ethereum Futures ETF came moments after the dump — a large fund may have offloaded their Bitcoin position to “trigger a cascade to buy ETH.”

Related: Bitcoin price briefly dips below $26K, falling to two-month lows

Bitcoin has recovered slightly since the crash, gaining 1.2% in the last two hours, according to data from TradingView. At the time of publication, Bitcoin is changing hands for $26,619.

Its price seems to have been buoyed by news that the SEC may look to approve an Ethereum Futures ETF product as soon as October.

Deposit risk: What do crypto exchanges really do with your money?

Share10Tweet6ShareSharePin2

Related Posts

ProShares announces launch of short Ether-linked ETF
Ethereum

ProShares announces launch of short Ether-linked ETF

02.11.2023
0

ProShares, a major issuer of exchange-traded funds (ETF), announced the launch of the short Ether-linked ETF on Nov. 2.ProShares’s new...

Read moreDetails
Slumdog billionaire 2: ‘Top 10… brings no satisfaction’ says Polygon’s Sandeep Nailwal

Slumdog billionaire 2: ‘Top 10… brings no satisfaction’ says Polygon’s Sandeep Nailwal

02.11.2023
Top Swiss bank launches Bitcoin and Ether trading with SEBA

Top Swiss bank launches Bitcoin and Ether trading with SEBA

02.11.2023
Elon Musk slams NFTs but ends up arguing the case for Bitcoin Ordinals

Elon Musk slams NFTs but ends up arguing the case for Bitcoin Ordinals

02.11.2023
3 reasons why Ethereum price is down against Bitcoin

3 reasons why Ethereum price is down against Bitcoin

02.11.2023
Load More
Next Post

Bitcoin or Ethereum? DeFi Dev Explains Which Is Better For Building

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

1,000% Gains? Shiba Inu Holders Bet Big on This New ICO

1,000% Gains? Shiba Inu Holders Bet Big on This New ICO

1 year ago
ChatGPT’s 42-Signal DOGE Analysis Flags Key $0.155 Support Test Amid Musk Drama

ChatGPT’s 42-Signal DOGE Analysis Flags Key $0.155 Support Test Amid Musk Drama

4 weeks ago
Shiba Inu’s LEASH Token Makes Debut on New Exchange

Shiba Inu’s LEASH Token Makes Debut on New Exchange

2 years ago
Coinbase Layer-2 Network Base Nears Mainnet Launch

Coinbase Layer-2 Network Base Nears Mainnet Launch

2 years ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Pi Coin Price Prediction: Binance Listing Rumors Heat Up Again – Could PI Skyrocket Past $10? 

JPMorgan Partners with Coinbase, Letting Millions of Chase Customers Buy Crypto Instantly

Stock Prices of Major Chinese Companies Now Available in Web3 Ecosystem

PAXMINING Makes Litecoin Cloud Mining Easy, Efficient, and Hassle-Free

Hong Kong Authorities Clarify Licensing Rules for Stablecoin Issuers

Revolutionizing Crypto Mining: XRP Mining Empowers Global Users with Smartphone-Based Cloud Mining

Trending

Solana’s xStocks top $1.6B in first month of trading, largely driven by centralized exchanges
Analysis

Solana’s xStocks top $1.6B in first month of trading, largely driven by centralized exchanges

31.07.2025
0

Solana‑based xStocks have cleared a new milestone one month after their June 30 debut, with cumulative trading volume...

Shiba Inu Price Prediction: 602 Million SHIB Tokens Burned in One Go – Could This Be the First Step Toward $1 SHIB?

Shiba Inu Price Prediction: 602 Million SHIB Tokens Burned in One Go – Could This Be the First Step Toward $1 SHIB?

31.07.2025
Bitcoin whipsaws below $116k amid largest hourly correction in two weeks; risks of further pullback to $114k

Bitcoin whipsaws below $116k amid largest hourly correction in two weeks; risks of further pullback to $114k

30.07.2025
Pi Coin Price Prediction: Binance Listing Rumors Heat Up Again – Could PI Skyrocket Past $10? 

Pi Coin Price Prediction: Binance Listing Rumors Heat Up Again – Could PI Skyrocket Past $10? 

30.07.2025
JPMorgan Partners with Coinbase, Letting Millions of Chase Customers Buy Crypto Instantly

JPMorgan Partners with Coinbase, Letting Millions of Chase Customers Buy Crypto Instantly

30.07.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz