Tech News
August 6, 2023

Downturn in Bitcoin Price: $1 Billion Withdrawal by Investors from Crypto Markets

Bitcoin Price Witnesses 9% Decline Since Last Thursday Amidst Risky Asset Sell-Off; Concerns Deepen with SpaceX's Reported Crypto Dump

Bitcoin Sees $1 Billion Outflow in 24 Hours, Leading Cryptocurrency Markets' Losses, as per CoinGlass Data

The prominent cryptocurrency trading platform, CoinGlass, reports a significant outflow of $1 billion from the cryptocurrency market within the last 24 hours. Notably, nearly half of this loss can be attributed to bitcoin.

On Friday, the world's most valuable cryptocurrency, Bitcoin, was observed trading at $26,327. This marks a 16% decrease from its peak earlier in July this year, as stated by data from CoinMarketCap.

The decline experienced on Thursday impacted not only the stock markets but also assets traditionally considered safer, such as government bonds. This sell-off followed expressions of concern by officials at the US Federal Reserve regarding persistently high inflation levels, hinting at the possibility of an impending rate hike.

Musk has been a vocal proponent of bitcoin, announcing in early 2021 that his Tesla (TSLA) would accept payment in the cryptocurrency, though he later ditched those plans. Tesla (TSLA) also dumped a big chunk of its own bitcoin holdings last year.The crypto market has faced pressure from US regulators in recent months. In June, the Securities and Exchange Commission sued Coinbase the world鈥檚 largest crypto exchange, alleging that it is acting as an unregistered broker. Coinbase has denied the allegations.The company caught a break this week when it won a crucial regulatory approval that will allow the platform to offer US-based investors access to crypto derivatives, which account for about 75% of global crypto trades.

Musk's Shifting Stance on Bitcoin: From Acceptance to Abandonment

Elon Musk, a notable advocate of bitcoin, made waves in early 2021 by announcing that his company Tesla (TSLA) would accept payments in the form of the cryptocurrency. However, these plans were later discarded. Furthermore, Tesla (TSLA) made a significant move by liquidating a substantial portion of its bitcoin holdings last year.

In recent months, the cryptocurrency market has encountered regulatory challenges imposed by US authorities. The Securities and Exchange Commission (SEC) initiated legal action against Coinbase, the world's largest crypto exchange, alleging that it was operating as an unregistered broker. While Coinbase refuted these claims, it garnered a positive development this week. The platform secured a pivotal regulatory approval enabling it to provide US-based investors with access to crypto derivatives, which constitute approximately 75% of global crypto trading.

Source: CNN

Wyatt Shields

Technical Content Writer

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