- According to the data, the value of BTC has dropped by more than 11% in the past seven days. At the time of writing, it was trading at $25,910 and had a market value of over $503 billion.
- Unsurprisingly, the person who initiated this event was Elon Musk. Musk’s aerospace engineering company SpaceX sold $373 million worth of Bitcoin.
- The price drop had a greater impact on BTC’s on-chain metrics. Glassnode’s latest analysis showed that BTC’s supply profitability percentage dropped from 71% to 61%.
The news of SpaceX selling Bitcoin had a significant impact on the crypto world, but Bitcoin is now showing signs of recovery and its price may rise in the future.
SpaceX’s Bitcoin Sale Pressured the Market
In the past few days, the crypto market experienced a sudden drop, which also lowered the prices of leading coins like Bitcoin and Ethereum. The impact was not limited to just market leaders, but also affected altcoins with lower market value.
For the past few weeks, BTC has comfortably stayed below the $30,000 level. However, on August 17th, investors were shocked to see Bitcoin experience a major drop and its price fall below $26,000.
According to the data, the value of BTC has dropped by more than 11% in the past seven days. At the time of writing, it was trading at $25,910 and had a market value of over $503 billion. Additionally, the trading volume has dropped by more than 38% in the past 24 hours.
While there could be multiple factors turning the entire market red, an analytical platform found indications of what the most influential trigger could be. Unsurprisingly, the person who initiated this event was Elon Musk. Musk’s aerospace engineering company SpaceX sold $373 million worth of Bitcoin. This sale from SpaceX may have caused fear among investors and led to the price drop.
The price drop had a greater impact on BTC’s on-chain metrics. Glassnode’s latest analysis showed that BTC’s supply profitability percentage dropped from 71% to 61%. This is a reflection of a market becoming increasingly price-sensitive and dominated by “whales.”
Furthermore, the number of Bitcoin UTXOs in a loss reached the highest level in the past month at 41,944,655.958. Not only that, but whale activity around the coin also decreased, with the number of whales reaching the lowest level in the past month at 1,599.
Bitcoin Shows Signs of Recovery
The market decline stopped, and the reason for this is the role of the U.S. Securities and Exchange Commission (SEC). This happened after the regulatory agency announced plans to approve Ethereum futures ETFs.
According to a Bloomberg report published on August 17th, the SEC will not block the ETH ETF product. Since then, BTC’s on-chain metrics have shown signs of recovery, giving hope that its value may rise.
In particular, according to CryptoQuant, Bitcoin’s exchange reserves were decreasing, indicating that the coin was not under selling pressure. The coin’s aSOPR was green, indicating that more investors were selling at a loss and pointing to a possible market bottom. Additionally, BTC’s Relative Strength Index (RSI) was in oversold territory. This could bring buying pressure to the coin and potentially increase its price.
