Bitcoin price went down really fast on August 17, almost 8% in just 10 minutes. It went lower than $26,000, the lowest since June 20. On the other hand, Ethereum’s price went up by 11% to $1,700 in just 20 minutes.
The Reason Behind Bitcoin’s Value Decline
Bitcoin drop of its $30k peak yet again due to certain market conditions. Many believe there might be two big reasons for it.
First, recently, WSJ reported on SpaceX’s Bitcoin holdings. The report revealed that the company, owned by Elon Musk, sold all its BTC after writing it down on for 2021-2022. Many believe this revelation might have affected the BTC prices.
Secondly, Evergrande Group, a significant Chinese player in the industry, filed for US bankruptcy protection. These combined events seems to have triggered a decline in Bitcoin’s overall value, causing it to drop below the $500 billion mark.
However, analysts point out that these two might not be the sole reason for its sudden drop. Despite the reasons being unknown, this decline sent shock waves to the whole Altcoin market.
Even though Bitcoin fell, it’s still doing better than before. Since the start of 2023, it went up by 60%, starting from around $16,550. This shows that, overall, Bitcoin is still growing.
Cryptocurrency analyst Will Clemente highlighted a significant point, mentioning that Bitcoin experienced its most substantial increase in a single day this year. This suggests that the cryptocurrency’s price became more unpredictable recently.
The surge in Ethereum
While Bitcoin had trouble, Ethereum just surged high. The value of Ether went up by 11%, reaching $1,700. According to a report, the United States Securities and Exchange Commission (SEC) might say “yes” to Ethereum ETF Futures.
A report from Bloomberg, states, The SEC is considering allowing nearly twelve companies, including ProShares, Volatility Shares, Bitwise, and Roundhill, to create “Ether futures ETFs.”
ETF analyst Eric Balchunas said he expected this to happen. He mentioned that the SEC’s thoughts on “Spot Bitcoin ETF,” can change over time.
The SEC has received a substantial number of documents related to Ether ETF Futures, totaling over 12 submissions since late July. This influx of materials represents a significant volume of information for the regulatory body to review.
Ups and Downs in the Market
These stories remind us that cryptocurrency prices can change really fast. Some things make them go up, and other things make them go down. It’s important to remember that the cryptocurrency market can be a bumpy ride.