SpaceX Shuffles Another $100M in Bitcoin as Price Slides

• SpaceX moved 1,083 BTC (~$100M) to new wallets on Dec 5, the 8th transfer in 2 months
• Main SpaceX wallet still holds 5,012 BTC worth ~$462M after the moves

Elon​‍​‌‍​‍‌​‍​‌‍​‍‌ Musk’s SpaceX has been on a spree to move Bitcoins, thus crypto market is abuzz with fresh speculations. On December 5, a total of 1,083 BTC (almost $ 100 million) was moved by SpaceX to new wallets, as per information given by a blockchain analytics firm, Arkham Intelligence. It’s the eighth time that the company has made an identifiable Bitcoin transfer; thus, a pattern of asset reallocation can be traced for the last two ​‍​‌‍​‍‌​‍​‌‍​‍‌months.

SpaceX’s Strategic Bitcoin Movements Amid Market Volatility

SpaceX​‍​‌‍​‍‌​‍​‌‍​‍‌ transferred 1,083 Bitcoin out of its main wallet, which is still holding 5,012 BTC worth around $462 million. Out of that, 283 BTC, which had a value of $31.33 million, were sent to a location named ‘bc1qrzg,’ and approximately $162.48 worth of BTC was sent to Coinbase Prime, probably for the sake of custody. The rest of the 800 BTC, which is equivalent to around $73.73 million, were moved to a new wallet termed ‘bc1qyh.’ These moves are consistent with the company’s practice of regularly rotating its Bitcoin holdings to new addresses.

It is also important to point out that the coins that were moved in the previous transactions over the last two months have not been touched, which indicates that the company is managing its assets for the long term rather than planning to sell them ​‍​‌‍​‍‌​‍​‌‍​‍‌immediately.

The​‍​‌‍​‍‌​‍​‌‍​‍‌ withdrawal rate of Bitcoin from SpaceX’s wallet to other wallets has significantly increased after the big crypto market crash that happened on October 10. Since then, SpaceX has made seven transfers, four of which are new wallets. Some of the analysts suggest that these decisions might just be the company rearranging its assets to take advantage of the market changes rather than selling off its assets completely. 

SpaceX’s latest Bitcoin transaction is aligned with several significant market events, first, the release of US PCE inflation data and second, the Federal Open Market Committee (FOMC) meeting, which might change the economic policies and market trends. During these events, the Bitcoin price has fallen by more than 1%, going from $94,000 to approximately $91,135. The drop is accompanied by a lower trading volume, which has decreased by 18%, thus showing that there is a lack of interest on the part of the traders in the crypto options expiration. 

According to CoinGlass, the derivatives data reveal a reduction in open interest in Bitcoin futures across major exchanges such as CME and Binance. This indicates that investors are taking a cautious approach in the short term.

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