Elon Musk, the mysterious CEO of SpaceX and Tesla, has sparked interest in the crypto world once again with revelations concerning SpaceX’s Bitcoin holdings. While acknowledging SpaceX’s ownership of Bitcoin, the company refrained from disclosing the exact amount, which ignited speculation and uncertainty within the crypto community.
On August 18, 2023, news surfaced that SpaceX had written down its Bitcoin holdings, sparking a flurry of arguments and controversies. The Wall Street Journal indicated that the write-down could mean SpaceX sold its $373 million Bitcoin holdings or reduced exposure by the same amount.
I actually read the WSJ report. I think @BitcoinMagazine is wrong here
Yes, the report claims that SpaceX marked down the value of their bitcoin by 373m (btw, that doesn’t mean they SOLD 373m) and sold *some*, but selling some doesn’t necessarily mean they have no bitcoin left https://t.co/rLgwA0N8Zi pic.twitter.com/GSrOio7zku
— Pledditor (@Pledditor) August 17, 2023
As different accounts surfaced on social media channels, the situation became murkier. While certain sources alleged full liquidation of SpaceX’s Bitcoin stash, others expressed skepticism due to the news article’s ambiguous wording. This ambiguity is related to the lack of clear information regarding SpaceX’s Bitcoin holdings, which has created widespread uncertainty.
Elon Musk had stated in 2021 that Tesla and SpaceX both have Bitcoin on their balance sheets. While Tesla’s Bitcoin holdings were made public, SpaceX’s Bitcoin holdings remained unknown. This information gap has been crucial in the ongoing confusion over the amount of SpaceX’s participation with bitcoin.
— Matt C⚡️ (@mithcoons) August 17, 2023
Tesla’s first excursion into Bitcoin saw the corporation invest $1.5 billion during a bull market time. Yet, the company later announced it had sold off 72% of its Bitcoin holdings in Q2 2022, prompting concerns over its crypto approach.
SpaceX Bitcoin Holdings: Catalyst for Controversy and Market Movement
The speculation about SpaceX’s Bitcoin holdings was seen to be a major cause in Bitcoin’s $2,000 price decline. While some blamed the market drop on uncertainty, others denied it had any effect. Notably, Elon Musk has yet to respond to the situation, leaving room for speculation and dispute.
As a result of this change of events, several in the cryptocurrency world have criticized Musk’s perceived approach to Bitcoin. Accusations of buying high and selling low, along with mentions of “paper hands,” surfaced on platforms like Reddit and X. Others linked the Bitcoin write-down to SpaceX’s possible desire to become a big participant in the payments business.
Amid uncertainty, Bitcoin proponents advised holding onto assets and resisting fear, uncertainty, and doubt (FUD) influence. Bitcoin’s price was $26,433 at the time of writing, having surpassed the $26,000 barrier mark. Subsequently, a 9% price decline prompted a significant downturn in the altcoin market, resulting in double-digit losses for major altcoins.
— Lodewyck Berghuijs (@LodewyckBTC) August 18, 2023
The evolving SpaceX Bitcoin narrative underscores crypto market volatility and the influence of figures like Elon Musk on asset values.