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The <a href="https://blockchainreporter.net/market/" rel="noopener noreferrer nofollow">crypto market</a> experienced heavy volatility over the last 24 hours, with prices taking a nosedive and then finding some stable regions. According to Lookonchain, here’s a deep dive into the events that caused volatility in the market.<h2 id="header-0">SpaceX’s BTC Sale, Chinese Giant’s Fall, and Rate Hike Fears</h2>On Aug. 18 at 9:30 pm UTC, <a href="https://blockchainreporter.net/bitcoin-price/" rel="noopener noreferrer nofollow">Bitcoin’s value</a> dropped by over 8% within a mere 10-minute window, pulling the entire cryptocurrency market into the selling momentum. As the crypto community struggles with this unexpected downturn, several theories have emerged: Elon Musk’s SpaceX offloading its Bitcoin assets, the collapse of a major Chinese property: Evergrande, and growing concerns over potential interest rate hikes. The exact cause remains a topic of fervent discussion and investigation.SpaceX, the aerospace tech giant, is said to have reduced the recorded value of its Bitcoin assets by a cumulative $373 million over the past two years.A Wall Street Journal article highlighted that SpaceX had listed Bitcoin assets worth $373 million on its financial statements for both 2021 and 2022 and has since reportedly offloaded the digital currency. The exact amount of the sale remains uncertain, with no confirmation on whether the entire $373 million in Bitcoin was sold.As per the WSJ, “SpaceX adjusted the value of its Bitcoin holdings downward by $373 million across the last two years and has proceeded to sell its cryptocurrency assets.”In less than 12 hours, Bitcoin dropped from $28K to $25K, and Ethereum fell to $1,500 from $1,800. During the same period, over $928 million worth of USDT positions got liquidated.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/d000fa37d67245368ee429db694c8d5f.png" />Data sourced from the crypto analysis tool, Coinglass, reveals that Bitcoin long positions worth over $6.74 million were wiped out in the four hours to the time of publication. In the past day, the total liquidations for traders holding open long positions – essentially wagering on a rise in crypto asset prices – surpassed a heavy $836 million.<h2 id="header-1">SEC’s Timely News Prevents Further Market Plunge</h2>Nevertheless, the market experienced a mild rebound after reports surfaced that the U.S. Securities and Exchange Commission is poised to greenlight Ether Futures-based exchange-traded funds (ETFs).Bloomberg, referencing undisclosed individuals related to the situation, indicated that the regulatory body seems unlikely to obstruct the proposals from almost a dozen firms, such as ProShares, Volatility Shares, Bitwise, and Roundhill, which have recently submitted applications to introduce Ether futures ETFs.The announcement acted as a catalyst, halting the decline of not just <a href="https://blockchainreporter.net/ethereum-price/" rel="noopener noreferrer nofollow">Ethereum</a> but also providing some stability to the crypto market. Investors breathed a sigh of relief, hopeful that this might be the beginning of a recovery phase.Labeling many of the reasons for the downturn as “speculations,” it is to be noted that the timing of the SEC reports hints at the endorsement of an Ethereum Futures ETF shortly after the market dip. It suggests a significant fund might have shed its Bitcoin holdings to initiate a domino effect favoring ETH purchases.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/7d5919d3c30a4d648314fbc98f13434e.png" />Additionally, Bitcoin experienced its most significant one-day surge in implied volatility for the year. Even with the recent decline, BTC has risen by 60% since starting 2023 at approximately $16,550.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/d90b888200e04162a6d29c55353468c9.png" />As of writing, Bitcoin recovered from the crash slightly, gaining over 1%. BTC price is currently trading around $26,436, and Ethereum is hovering at $1,685.

Why Is the Crypto Market Down Today? SpaceX Sells $373M BTC; SEC’s Ether ETF News Halts Drop

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