SpaceX Sell-Off Rumors and Macroeconomic Headwinds Trigger 11% Bitcoin Plunge
Bitcoin (BTC) shattered weeks of stagnation last week with a dramatic 11% decline—its worst weekly performance since the FTX collapse. The sell-off erased two months of gains, driven by a combination of negative catalysts:
- SpaceX Bitcoin liquidation reports: The Wall Street Journal revealed Elon Musk's SpaceX wrote down $373M in BTC holdings from 2021-2022, mirroring Tesla's strategy. This news alone triggered a 7% single-day drop.
- Stronger dollar dynamics: Robust US retail sales (+0.7% MoM in July) and hawkish Federal Reserve meeting minutes bolstered the DXY index, pressuring risk assets.
- Deteriorating risk sentiment: Fitch's warning of potential US bank downgrades, China growth concerns, and sustained equity market declines (S&P 500's third weekly drop) created a perfect storm for crypto liquidations.
👉 Why institutional sell-offs impact crypto markets
Technical Analysis: BTC Eyes Critical $25,000 Support Level
Daily chart patterns suggest Bitcoin's brief stabilization near $26,000 lacks conviction, with high probability of further downside:
- Key support zone: $25,000—a psychologically significant level tested repeatedly since February 2023. Breaching this could accelerate declines.
- Resistance boundaries: Any rebound likely faces rejection at the $26,500-$27,000 supply zone, where previous support now turns to resistance.
- Market structure: The absence of higher lows since July signals dominant bearish control.
Macroeconomic Watchlist
All eyes shift to the Jackson Hole Economic Symposium this week, where Fed Chair Powell's speech may:
- Reinforce hawkish monetary policy
- Further dampen risk appetite
- Potentially extend BTC's corrective phase
Bitcoin Investment FAQs
Q: Should I buy Bitcoin during this downturn?
A: Dollar-cost averaging (DCA) during volatility can mitigate timing risks, but ensure portfolio allocation aligns with your risk tolerance given ongoing macro uncertainty.
Q: How does the Fed's policy impact Bitcoin?
A: Tightening cycles historically correlate with crypto drawdowns as liquidity contracts and Treasury yields become more attractive versus speculative assets.
Q: What's the significance of $25,000 for BTC?
A: This represents a multi-tested technical and psychological threshold—a decisive close below could trigger algorithmic selling and liquidations.
👉 Mastering crypto technical analysis strategies
Disclaimer: This content is for educational purposes only and does not constitute financial advice. Cryptocurrency investments carry substantial risk.
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