Bitcoin Drops to New Two-Month Low as World Markets Sell Off

Bitcoin has dropped to a new two-month low, following a wave of selling in global markets. The sell-off was triggered by a report that Elon Musk's SpaceX sold its Bitcoin holdings. Other factors contributing to the sell-off include concerns about China's economy and fears that U.S. interest rates would stay higher for longer.

Aug 18, 2023 - 21:31
Aug 18, 2023 - 21:31
 0  35
Bitcoin Drops to New Two-Month Low as World Markets Sell Off
usnews - Bitcoin Drops to New Two-Month Low as World Markets Sell Off

What is happening?

  • Bitcoin has dropped to a new two-month low, following a wave of selling in global markets.
  • The sell-off was triggered by a report that Elon Musk's SpaceX sold its Bitcoin holdings.
  • Other factors contributing to the sell-off include concerns about China's economy and fears that U.S. interest rates would stay higher for longer.

Bitcoin fell to a low of $26,172 on Friday, its lowest since June 16. The cryptocurrency has been on a downward trend since hitting a high of $69,000 in November 2021.

The sell-off in bitcoin was triggered by a report in the Wall Street Journal that Elon Musk's SpaceX sold its bitcoin holdings. Musk is a major supporter of Bitcoin, and his tweets have often moved the price of the cryptocurrency.

Other factors contributing to the sell-off include concerns about China's economy. China has been cracking down on cryptocurrency mining and trading, and the country's central bank has warned investors about the risks of investing in Bitcoin.

There are also concerns that U.S. interest rates could stay higher for longer than expected. This could make it more expensive to borrow money, which could hurt economic growth and lead to a decline in demand for risky assets like Bitcoin.

What does this mean for the future of Bitcoin?

It is too early to say what the long-term impact of the sell-off will be on Bitcoin. However, the current volatility suggests that cryptocurrency is still a risky investment.

Investors who are considering investing in Bitcoin should do their research and understand the risks involved. They should also be prepared to hold Bitcoin for the long term, as the price of the cryptocurrency is likely to be volatile in the short term.

Additional Information:

  • Bitcoin is a digital currency that was created in 2009.
  • It is not backed by any government or central bank.
  • Bitcoin is traded on decentralized exchanges.
  • The price of Bitcoin has been volatile since its creation.
  • Bitcoin has been criticized for its environmental impact.

The future of Bitcoin is uncertain. Some experts believe that it could become a mainstream currency, while others believe that it is a bubble that is bound to burst.

usnews US News is a reputable author that delivers a comprehensive range of up-to-date news to the United States and beyond. With a keen focus on providing the latest information across various fields, US News keeps readers informed about the most significant developments happening both domestically and globally. Whether it's politics, economics, technology, science, health, or culture, this author strives to cover diverse topics, ensuring a well-rounded news experience. By combining extensive research, journalistic integrity, and a commitment to accuracy, US News offers readers an invaluable resource to stay informed and make informed decisions in an ever-changing world.