Bears ran through crypto markets on Friday, following reports that Elon Musk’s Spacex had sold all of its bitcoin holdings. It has been suggested that Spacex liquidated over $370 million worth of the cryptocurrency last year. Ethereum dropped below $1,600.
Bitcoin
Bitcoin (BTC) bears pushed the cryptocurrency to a two-month low on Friday, following news that Spacex had liquidated all of its holdings BTC.
After peaking at $28,525.11 during Thursday’s session, BTC/USD plunged to a bottom at $25,409.11 late last night.
This was the weakest point that bitcoin had fallen to since June 16, when price was near a breakout below $25,000.
From the chart, it appears that the sell-off came as the 14-day relative strength index (RSI) fell deep into oversold territory.
The index is now tracking at 20.10, which is the lowest level it has hit since January 2022, which ironically was when Tesla began to sell off its own holdings in bitcoin.
Price has somewhat rebounded from earlier lows, and is now trading at $26,341.67.
Ethereum
In addition to bitcoin, ethereum (ETH) also moved significantly lower following the news, slipping below $1,600 in the process.
ETH/USD dropped to an intraday low of $1,551.71 on Friday, down nearly $200.00 from Thursday’s peak.
This is the weakest reading for ethereum since March 12, when price was trading below the $1,459 level.
Like with BTC above, today’s sell-off has moved the RSI into a bear zone, with a current reading of 21.30.
This could work in the favor of bulls looking to buy the dip, and to a degree already has, with ETH now trading at $1,678.05.
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Will this bear run continue into the weekend? Leave your thoughts in the comments below.