The cryptocurrency market has experienced one of the biggest declines in the last few months.
Bitcoin (BTC) enthusiasts were taken aback when the leading cryptocurrency experienced a swift drop, diving below the $26,000 mark, only to recover slightly later.
On the night of August 17th, Bitcoin was trading comfortably at approximately $27,677 at 9:30 pm UTC, as per BitDegree data. However, within a momentary 10-minute window, its value plummeted by over 8% to touch $25,409.
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Bitfinex, one of the leading crypto exchanges, recorded an even steeper fall, with BTC touching a low of $24,715. Fortunately, the descent didn't last long, and the crypto found its footing back above $26,000.
The sudden dip left the community in a state of speculation. A dominant narrative from the crypto enthusiasts on X (formerly Twitter) is the reported move by SpaceX. It is believed that SpaceX sold $373 million in Bitcoin.
On the other hand, whispers about China's Evergrande Group filing for Chapter 11 bankruptcy in New York also added to the speculations surrounding the sudden decline.
A remarkable point post this episode was Bitcoin's market capitalization dropping below the $500 billion mark, a level that was consistently maintained since June 16th.
Despite the unexpected dive, it's essential to note that Bitcoin has witnessed an impressive 60% increase since the beginning of 2023 when it was priced around $16,550.
At the time of writing, Bitcoin (BTC) stands at $26,480.32, recording almost 8% decrease in the last 24 hours.
It is worth noting that other cryptocurrencies, except for stablecoins, also responded to this decline. The price chart turned red for cryptocurrencies like Ether (ETH), BNB (BNB), XRP (XRP), Cardano (ADA), Solana (SOL) and Dogecoin (DOGE).
The sudden decline in crypto prices was echoed on the Crypto Fear and Greed Index, which entered the "Fear" zone for the first time in five months.
The cryptocurrency community witnessed a swift, unexpected price drop in Bitcoin recently. While several factors are suspected to be the cause, including news about SpaceX and China's Evergrande Group, Bitcoin's resilience is evident in its yearly growth, standing tall with a 60% surge since January 2023.
