Bitcoin price suddenly dropped late on Thursday, shocking the cryptocurrency ecosystem.
It was the biggest daily drop since the collapse of FTX, with liquidations totaling $1 billion.
Bitcoin Price Drops Sharply Amid Big Selling Speculation, Triggering Market Turmoil
Bitcoin's value dropped by up to 9% in 24 hours. Since this decrease took place in an average of 30 minutes, it had serious effects.
Losses in altcoins were deeper than BTC, but found 20 percent.
There are 2 known sources of the late fall. The first is the news that SpaceX, the company of Elon Musk, has sold his Bitcoins. The other is Evergrande's filing for bankruptcy.
While various factors have been cited as potential triggers for this market turmoil, including rumors of SpaceX's Bitcoin sales and the bankruptcy of China Evergrande, experts warn that these events may not have directly impacted the price crash.
In particular, SpaceX's so-called Bitcoin sales were reportedly based on unsubstantiated claims, and the company's Bitcoin holdings were reportedly falling in value.
Such impairments are commonplace in business accounting when the fair market value of an asset falls below its book value. However, SpaceX did not confirm the actual sale of Bitcoin assets.
Grayscale Case
A number of experts attribute this price drop to the Grayscale lawsuit.
As it is known, Grayscale applied to the SEC to convert its GBTC fund into a spot Bitcoin ETF. When the SEC rejected this decision, Grayscale sued the SEC.
A decision on this case is expected today. And according to some experts, there has been a sharp decline due to the decision of this case.
Here, too, experts suggest 2 possibilities:
- The case will be positive for Grayscale and since the GBTC fund is cheaper, many investors sold their spot Bitcoins and turned to the GBTC fund. With the move of the investor, who learned the positive result of the case from the inside, there was a sharp decline in Bitcoin.
- The Grayscale case will end negatively. And because this information was insider, it was priced in advance.
Of course, these latest claims do not reflect the truth. We will be reporting the developments regarding the Grayscale case today.
*Not investment advice.