In a stark reminder of past market turbulence, Bitcoin’s BTC/USD recent crash coinciding with SpaceX’s alleged unexpected pull-out has experts cautioning against a return to the volatility witnessed during the “Elon-driven tops and bottoms” of previous years.
What Happened: On Friday, Bitcoin remained close to its lowest point in two months, leaving market participants grappling with significant sell-offs. The price of the largest cryptocurrency moved sideways after a single day of trading, leading to an 8% loss.
The predominant feature of this market turmoil was a series of mass sell-offs in derivative markets, significantly outweighing activity in the primary market.
“In Deribit, it appears that a substantial account was liquidated, given the large-scale short liquidation that occurred concurrently,” reported Cointelegraph, citing trading company QCP Capital’s market update shared with subscribers via Telegram.
See Also: Amid Crypto Bloodbath, Expert Predicts Bitcoin Could Reach $300,000 To $500,000 By 2024
The update further alluded to the past Bitcoin price fluctuations triggered by remarks from Elon Musk, who serves as the CEO of both SpaceX and Tesla. “This brought back the 2021 and 2022 ghosts of Elon-driven tops and bottoms, and we certainly hope the market will not revert to those times again.”
An analyst from Rekt Capital pointed out a potentially grim outlook: a double-top formation in 2023 for Bitcoin. He said that, despite a small breakout in seller volume during the crash, the market had not yet reached the levels of “seller exhaustion values” witnessed in previous reversals.
On a more optimistic note, a trader from CryptoCon highlighted the historical resilience of Bitcoin’s price during bull market retracements, particularly in relation to the relative strength index or RSI.
Market players now await Jerome Powell‘s impending commentary at Jackson Hole, eagerly seeking insights into how the actions of the United States Federal Reserve might influence the future trajectory of the cryptocurrency market, the report noted.
Why It’s Important: SpaceX reportedly recorded $373 million worth of Bitcoin on its balance sheet in 2021 and 2022.
Musk’s involvement in the crypto space and his endorsement of various tokens, including Dogecoin DOGE/USD, have had a significant impact on their market values.
Previously, he temporarily changed the Twitter, now rebranded as X, logo to feature the iconic Doge.
Price Action: At the time of writing, Bitcoin was trading at $25,887 a piece, down about 2.3% in the past 24 hours, according to the data from Benzinga Pro.
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