Bitcoin experienced a significant drop, falling by around 9% to slightly above $26,000. The cryptocurrency’s latest trade value was $26,593.68, representing an over 8% decrease according to Coin Metrics data. This decline followed reports that Elon Musk’s SpaceX had devalued its bitcoin holdings by $373 million over 2022 and 2021, subsequently selling the digital currency. The rapid and severe sell-off is attributed to Musk’s influence, with experts noting its retail-driven nature. Previously, Tesla, also led by Musk, sold 75% of its bitcoin holdings after a substantial $1.5 billion investment in 2022. Musk’s endorsement of certain altcoins on social media has been shown to impact their prices. The drop in bitcoin’s value also coincided with the release of Federal Reserve minutes from their July policy meeting, pushing the cryptocurrency to its lowest point in nearly two months.

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