<\/p>\n
Bitcoin plunged more than 8% to around $25,500 on Thursday afternoon, its largest daily decline this year.<\/p>\n
The crypto had been trading around $28,000 shortly before a Wall Street Journal report that SpaceX had sold all its holdings in 2022. That appears largely coincidental, however, as bitcoin had already begun its descent, reflecting several bearish on-chain <\/a>metrics, when the Journal article was published at 3:22 ET.<\/p>\n SpaceX, which held $373 million worth of BTC in 2021 and 2022, reportedly<\/a> sold the crypto after writing down the value of its holdings, similar to actions take by Tesla last year<\/a>.\u00a0<\/p>\n Neither SpaceX nor CEO Elon Musk have commented on the report, and the exact timing of the sale is unknown. SpaceX did not immediately return a request for comment.<\/p>\n Analysts are skeptical about the timing and response to the news. Terrence Yang, managing director at Swan Bitcoin, told Blockworks, \u201cThe fact that SpaceX sold all or almost all its bitcoin should have been priced in by the market.\u201d\u00a0<\/p>\n Other analysts pointed to overexposure and market exuberance over a potential US spot BTC ETF approval, which has reportedly been delayed until March of next year.<\/p>\n \u201cCombined with nuance around how price action has been really apathetic and weak post-ETF announcements, the conclusion should have been short-term caution,\u201d Jason Pagoulatos, head of markets at Delphi Digital told Blockworks.\u00a0<\/p>\n He said a lot of market participants were likely mispositioned because of that hype and were likely caught unaware, resulting from price action apathy<\/a>. Thursday\u2019s sell-off subsequently witnessed more than $200 million<\/a> lost over a 24-hour period in long positions.<\/p>\n The bitcoin-led sell-off sent shockwaves through the market. Ether (ETH) fell 12% to $1,530, while dogecoin (DOGE), a Musk favorite, fell 15% to $0.056. Ether recovered from its five-month low, clawing back 9.7% following<\/a> a Bloomberg rehashing of previously reported news<\/a> that the SEC may greenlight a futures-based ether ETF. The industry\u2019s second-largest digital asset remains suppressed \u2014 down about 6% over the past 24 hours as of 5:00 am ET.<\/p>\n Rich Rosenblum, CEO of market maker GSR, agreeing with previous takes on market exuberance, noted multiple factors were at play, including a strengthening US dollar and a reversal to this year\u2019s tech rally.\u00a0<\/p>\n \u201cStrong tech sector buying, BTC ETF filings, and the Ripple win brought a wave of macro buying to crypto in June,\u201d he said. \u201cBut that bullishness is fading as macro markets have been reversing course in recent weeks,\u201d he said.<\/p>\n \u201cThe simultaneous timing of Evergrande and the SpaceX news spooked the market, flushing out some futures length. Assets that rose the most over the last month were the hardest hit.\u201d<\/p>\n The tech-heavy Nasdaq Composite fell 1.1% to 13,316 by mid-afternoon on Thursday, while the Dow Jones Industrial Average also slipped 0.8% to 34,474<\/p>\n The crypto turmoil coincides with a broader sell-off in risk assets. Evergrande Group<\/a>, China\u2019s one-time second-largest property developer, filed for<\/a> Chapter 15 bankruptcy in New York on Thursday.\u00a0<\/p>\n The firm\u2019s extensive borrowing led to its default<\/a> in 2021, triggering a severe property downturn in China\u2019s economy. At the time, officials from the People\u2019s Bank of China sought to downplay the risks to financial markets, arguing a contagion-wide effect had been contained.<\/p>\n According to Michael Rinko, research analyst at Delphi Digital, China is undergoing an extensive, state-driven deleveraging of the real estate sector.\u00a0<\/p>\n The situation has shaken confidence and demand across the nation, with recent indications such as a recent rate cut<\/a> by the People\u2019s Bank of China hinting at developing economic cracks.<\/p>\n Investment manager Cathie Wood of Ark Invest also weighed in, asserting that China is exporting deflation more extensively than many economists realize.\u00a0<\/p>\n An unfolding deflationary trend in China, exacerbated by recent defaults within the real estate and trust industries, may be nearing a 20% impact, she noted.<\/p>\n Wood also expressed concerns over the Federal Reserve\u2019s aggressive rate hikes, which she contends have exacerbated global deflationary risks. The unprecedented 22-fold increase in the Federal Reserve\u2019s funds rate may be impacting China first, with potential repercussions for the global economy to come later, the CEO added.<\/p>\n Get the day\u2019s top crypto news and insights delivered to your email every evening.\u00a0Subscribe to Blockworks\u2019 free newsletter<\/a>\u00a0now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can\u2019t-miss tweets and more from\u00a0Blockworks Research\u2019s Daily Debrief<\/a>.<\/strong><\/p>\n Can\u2019t wait? Get our news the fastest way possible.\u00a0Join us on Telegram<\/a>\u00a0and follow us on\u00a0Google News<\/a>.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Bitcoin plunged more than 8% to around $25,500 on Thursday afternoon, its largest daily decline this year. The crypto had been trading around $28,000 shortly before a Wall Street Journal report that SpaceX had sold all its holdings in 2022. That appears largely coincidental, however, as bitcoin had already begun its descent, reflecting several bearish […]<\/p>\n","protected":false},"author":2,"featured_media":138861,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-138860","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/138860","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=138860"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/138860\/revisions"}],"predecessor-version":[{"id":147935,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/138860\/revisions\/147935"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/138861"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=138860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=138860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=138860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Panic sell<\/h2>\n
The case for Evergrande<\/h2>\n
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