Bitcoin faces headwinds as SpaceX dumps holdings, plunging below $25,500

Bitcoin, the leading cryptocurrency, finds itself in a precarious position as its value slipped beneath the $25,500 threshold, sparking concerns of a deeper downturn. This latest setback follows the revelation that aerospace titan SpaceX has sold approximately $373 million worth of Bitcoin, a trove it had accumulated between 2021 and 2022. As market sentiment shifts, Bitcoin's path ahead is challenged by a resistance level at $28,940, while drawing newfound support at $25,409.

Documents disclosed in a report by The Wall Street Journal on August 17 showcased that SpaceX had disclosed Bitcoin holdings amounting to $373 million over the course of 2021 and 2022. These filings underscored that the company's total expenditures for 2022 reached a staggering $5.2 billion, with a parallel outlay of $5.4 billion spanning 2021 and 2022, attributed to property acquisition, equipment procurement, as well as research and development endeavors. Though SpaceX remains discreet about this maneuver, this strategic maneuver signals a discernible recalibration in the firm's fiscal strategy.

Notably, in 2021, Elon Musk publicly confirmed SpaceX's acquisition of an undisclosed quantity of Bitcoin. In the same year, an official submission to the U.S. Securities and Exchange Commission unveiled Tesla's intentions to amass $1.5 billion worth of the cryptocurrency. These revelatory proclamations acted as a catalyst for Bitcoin's meteoric ascent, propelling it to attain a top above $43,000.

As the news reverberated through the market, Bitcoin is exhibiting signs of recuperation and is currently oscillating around the $26,450 mark, all while boasting a robust 24-hour trading volume of $26,151,285,776. Despite this retraction, Bitcoin remains perched atop CoinMarketCap, boasting an active market capitalization of $511,783,802,814.

In a grievous consequence, the cryptocurrency market capitalization has sustained a bruising loss of nearly $100 billion within the preceding 24 hours.

Bitcoin dumps to 9-Week low

Bitcoin underwent a staggering 10% plummet, sinking to a nine-week nadir of $25,166 during the early hours of Friday's Asian trading session. These price echelons have not been encountered since the midpoint of June when the market witnessed a debilitating slump propelled by a barrage of SEC litigations.

Glassnode's assessment pinpointed an extraordinary retraction of leverage within Bitcoin futures markets. The upheaval precipitated over $220 million in Bitcoin long liquidations, simultaneously triggering an expansion of Options Implied Volatility from 24% to an exorbitant 55%.

Coinglass, for its part, cataloged over $1 billion in liquidations within the past 24-hour window. This tumultuous phase saw more than 80% of crypto liquidations originating from long positions, yielding a collective loss of $829 million. The upheaval impacted a staggering 173,500 traders.

Bearing the brunt of this turmoil, the total market capitalization staggered to a 6.7% downturn, settling at $1.09 trillion, its most abysmal valuation since the gloomy days of the mid-June slump.

Following an extended period characterized by record low volatility and tightly range-bound trading, Bitcoin has orchestrated a pivotal move, and, regrettably, it has been a downward one.