Bitcoin’s Price Drop and its Causes
The price of Bitcoin (BTC) plummeted by 8% within 10 minutes, sending the cryptocurrency to dip below $26,000 before it partially recovered.
At 9:30 pm UTC time on Aug. 17, BTC was trading at around $27,677, but it quickly dropped 8% to $25,409, according to Coinmarketcap.
On the crypto exchange Bitfinex, the price of Bitcoin dropped even further to a low of $24,715 before beginning its recovery back above $26,000.
Many in the crypto community have attributed the price drop to reports that SpaceX wrote down the value of the BTC it acquired by $373 million and sold the cryptocurrency, while others have pointed to China’s Evergrande Group filing for Chapter 11 bankruptcy in New York.
Cryptocurrency Market Cap Below $500 Billion
The fall has caused Bitcoin’s market cap to drop below $500 billion for the first time since June 16, reaching lows not seen since June 20.
Cryptocurrency analyst Will Clemente noted that Bitcoin experienced the largest single-day increase in implied volatility this year.
Despite the dip, BTC is still up 60% since its entry into 2023 at around $16,550, making it one of the best web 3.0 crypto projects.
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