Last night, the Wall Street Journal reported that SpaceX reduced its holdings of Bitcoin worth $373 million. The report revealed that SpaceX carried out reductions in Bitcoin in 2021 and 2022, although the specific time of the reduction was not disclosed. Meanwhile, both Tesla and SpaceX are holding Bitcoin, but this report only covers reductions in 2021 and 2022, not this year. Tesla has also reduced its holdings of Bitcoin in the past, but its financial reports for the first and second quarters of this year did not show any relevant changes.

Therefore, this reduction should occur before 2023. While this information may spark panic in the short term, it is unlikely to have a material impact on overall market trends. It should be pointed out that market fluctuations are usually not caused by a single event, but are the result of a variety of comprehensive factors.

In this context, we can conclude that the reasons for the market decline are multifaceted and not caused by one specific event. The decline of the market is usually the result of the superposition of multiple factors. When these factors are met at the same time, it may trigger a panic decline. First of all, from the overall trend, the market has been in a downward trend recently. After a month of high sideways trading, our previous analysis also pointed to a downward trend.

Secondly, at the macro level, the instability of the U.S. stock market has further exacerbated the spread of panic in the market. Wall Street reports that SpaceX reduced its holdings of Bitcoin had a boosting effect.

To sum up, we believe that the market itself already has a downward trend, and other factors are only auxiliary factors that accelerate or promote this trend, but are not the only reason for the market decline.