The value of Bitcoin experienced a rapid decline of approximately 8 per cent within a mere 10-minute window, causing the cryptocurrency to plummet well under the $26,000 mark before staging a partial rebound.
As of August 17, BTC had been hovering at an approximate value of $27,677. However, in a swift turn of events, it endured a precipitous drop of just over 8 per cent, subsequently settling at $25,409, as indicated by Coinmarketcap's data.
Coinmarketcap's figures also revealed that the downward movement was more pronounced on the crypto exchange Bitfinex, where Bitcoin's price nosedived to a low of $24,715 before undertaking a partial recovery that pushed it back above $26,000.
Initial reactions from market observers attributed this sudden decline to news reports suggesting SpaceX had recently devalued the BTC holdings it had previously acquired, resulting in a markdown of $373 million, followed by the sale of the cryptocurrency. Concurrently, some have pointed towards China's Evergrande Group's Chapter 11 bankruptcy filing in a New York court as a potential factor influencing Bitcoin's sharp tumble.
The ensuing drop has propelled Bitcoin's market capitalisation below the $500 billion threshold, marking the first instance since June 16 that the valuation has dipped to this level. The cryptocurrency's price also revisited lows reminiscent of June 20.
Despite this tumultuous downturn, it is important to note that BTC remains on an upward trajectory overall. Since the commencement of 2023, when it was valued around $16,550, the cryptocurrency has still managed to achieve a remarkable 60 per cent increase.
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