The world’s biggest cryptocurrency found its value down by around 7.2% as of 9:45 PM (GMT) on Thursday, August 18th. At present, the digital token is worth $26,634, following a loss of $2,067.
According to experts, a recent offloading of digital assets on the part of Elon Musk’s exploratory firm SpaceX could be behind the plunge. Earlier this week, rumors flew regarding how SpaceX appears to have offloaded some – if not all – of its Bitcoin holdings which are currently pegged at around $373 million.
Incidentally, the token’s price fell around two and a half hours after The Wall Street Journal published news of the SpaceX divestment.
Since then, however, Bitcoin has made a slight recovery. As of around 3:00 AM GMT on Friday, August 18th, the token regained around 1.2% within a two hour period and is presently trading at $26,619.
The token’s value appears to have been boosted by the Securities and Exchange Commission’s announcement that it is set to approve an Ethereum Futures ETF by the fourth quarter of this year.
Could the Fed be to Blame?
Experts likewise pointed out recent concerns that the US Federal Reserve is planning another round of rate hikes next month as the reason for Bitcoin’s fall. While the Fed has yet to confirm such a move, the rumors alone have fueled a quick shift in market sentiment.
Another possible reason is the marked rise of government bond yields over the past several days, as some experts see this as a sign that liquidity has been greatly reduced for the market in general.
A China Crisis
A number of market analysts have also posited the theory that the devaluation of China’s yuan could be what’s fueling the recent sell-off.
Experts recalled how Bitcoin prices dropped by a whopping 23% back in August 2015, around the last time the Chinese government devalued the yuan. This theory may have a grain of truth to it as the yuan is presently trading at its lowest since 2007.