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"Bitcoin Plunges by 9% to Slightly Above $26,000 in Late Thursday Sell-Off"

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Bitcoin Plunges by 9% as Elon Musk's SpaceX Sells Holdings: Market Update

Sharp Decline in Bitcoin

Bitcoin experienced a significant drop on Thursday evening, with its value plummeting by as much as 9% to slightly above $26,000. The cryptocurrency was trading at $26,839.24, reflecting an approximate 8% decline by 7:20 p.m. ET. This sudden decline followed reports from The Wall Street Journal, revealing that Elon Musk's SpaceX had written down the value of its bitcoin holdings by a total of $373 million in 2022 and 2021, and had subsequently sold the virtual currency.

Elon Musk's Influence

Elon Musk, the CEO of Tesla and SpaceX, has long been known as a vocal supporter of cryptocurrencies. In 2022, Tesla announced the sale of approximately 75% of its bitcoin holdings after initially investing $1.5 billion in the flagship cryptocurrency. Moreover, a recent study indicated that Musk's mentions of specific altcoins on X (formerly known as Twitter) have had a significant impact on boosting their prices.

Musk's Stance on Bitcoin

During the 2021 "The B-Word" conference, Musk emphasized his approach to bitcoin, stating, "If the price of bitcoin goes down, I lose money. I might pump, but I don't dump." This statement underscores his commitment to supporting the cryptocurrency despite potential fluctuations in its value. In conclusion, Bitcoin's abrupt decline, influenced by Elon Musk's SpaceX selling its holdings, has sent shockwaves through the market. Musk's involvement in the cryptocurrency space continues to impact prices, highlighting the need for investors to closely monitor his statements and actions. As the crypto market remains highly volatile, staying informed about influential figures like Musk is crucial for making informed investment decisions.

Conclusion: Impact on New Businesses

The recent plunge in Bitcoin, triggered by Elon Musk's SpaceX selling its holdings, offers a stark reminder of the volatility inherent in the cryptocurrency market. This volatility has significant implications for new businesses, particularly those considering crypto investments or operations.

Understanding Market Volatility

New businesses must understand the risks associated with such market volatility. The abrupt drop in Bitcoin's value underscores the potential financial risks involved in cryptocurrency investments. Businesses need to ensure they have robust risk management strategies in place to navigate these fluctuations.

Influence of Key Industry Figures

Elon Musk's significant influence on cryptocurrency prices highlights the impact that key industry figures can have on market trends. New businesses should monitor the actions and statements of such influential figures to anticipate potential market shifts.

Cryptocurrency as a Business Strategy

Despite the volatility, some businesses may still find value in incorporating cryptocurrency into their business strategy. Musk's statement about not dumping Bitcoin even if its price goes down suggests a long-term confidence in the cryptocurrency's value. In conclusion, the recent Bitcoin plunge and Elon Musk's influence provide valuable insights for new businesses. Understanding market volatility, the influence of key figures, and the potential role of cryptocurrency in business strategy can help new businesses navigate the complex cryptocurrency landscape.
Story First Published at: https://www.cnbc.com/2023/08/17/bitcoin-abruptly-tumbles-9percent-to-just-over-26000-late-thursday.html
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