Bitcoin has lost some of its gains as news about Tesla\u2019s earnings report is published. The Elon Musk-led company revealed that it sold 75% of its BTC holding at a 9% loss over Q2, 2022.<\/p>\n
Related Reading |\u00a0Short Positions Over $165 Million Get Liquidated Following The Bitcoin And Ethereum Uptrend<\/p>\n
According to the reports, the company has converted its Bitcoin holdings into fiat currency. In consequence, Bitcoin was rejected close to the $24,000 price point and now trades at $23,100 with a 2% loss over the past hour.<\/p>\n
BTC\u2019s price with important profits on the 4-hour chart. Source: BTCUSD Tradingview<\/p>\n
The cryptocurrency still records a 20% gain over the past week and market sentiment still leans optimistic about the potential for future profits. Jeff Dorman CIO for investment firm Arca commented the following on recent developments and their potential to impact Bitcoin:<\/p>\n
If you\u2019ve ever wondered whether or not trading bots control digital asset trading\u2026keep in mind the entire digital asset market just fell on news that one company (Tesla) sold one asset (BTC) 1-3 months ago. Expect full retrace of this move quickly.<\/p>\n
Tesla stock recorded a 4% profit immediately after it published its earnings report and it approaches its highest level since June. Ludwig Wittgenstein claims the car manufacturer\u2019s decision to liquidate a large portion of its BTC holding could have long-lasting consequences for the crypto market.<\/p>\n
Tesla +4% on earnings<\/p>\n
\u00af_(\u30c4)_\/\u00af pic.twitter.com\/coOFjpsOqy<\/p>\n
\u2014 TradingView (@tradingview) July 20, 2022<\/p>\n
The Elon Musk-led company purchased Bitcoin in 2021. At that time, BTC\u2019s price was losing steam as it traded around its current levels, but when Tesla announced its decision, the cryptocurrency was able to rally into uncharted territory.<\/p>\n
The company purchased BTC as a corporate strategy to hedge against inflation and as a tool to potentially increased its cash flow. Thus, why it is important to understand the reasons behind this BTC sale.<\/p>\n
According to Wittgenstein, there are three potential scenarios, the company needed to raise cash, there are climate concerns about BTC alleged energy consumption, or a total loss of faith in the cryptocurrency. The first scenario is the most bullish, and the last the most bearish.<\/p>\n
Why Did Tesla Sold Its Bitcoin?<\/p>\n
Founder at NorthmanTrader Sven Henrich believes Tesla followed a corporate strategy when the price of Bitcoin dropped below $20,000. The company forced itself to liquidate a portion of its assets to maintain its cash flow. Henrich said:<\/p>\n
In trading terms: $TSLA got itself margin called and liquidated a large chunk of its digital asset portfolio to make itself free cash flow positive & improve its balance sheet.<\/p>\n
Related Reading |\u00a0XRP Wins Again: Bullish Rally Sees It Climb to Sixth Spot by Market Cap<\/p>\n
So far, Wittgenstein\u2019s first scenario seems to be in play. If the crypto market can stay in its current course, despite Tesla\u2019s news, BTC\u2019s price could reclaim the important area above $27,000.<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
Bitcoin has lost some of its gains as news about Tesla\u2019s earnings report is published. The Elon Musk-led company revealed that it sold 75% of its BTC holding at a 9% loss over Q2, 2022.<\/p>\n
Related Reading |\u00a0Short Positions Over $165 Million Get Liquidated Following The Bitcoin And Ethereum Uptrend<\/p>\n
According to the reports, the company has converted its Bitcoin holdings into fiat currency. In consequence, Bitcoin was rejected close to the $24,000 price point and now trades at $23,100 with a 2% loss over the past hour.<\/p>\n
BTC\u2019s price with important profits on the 4-hour chart. Source: BTCUSD Tradingview<\/p>\n
The cryptocurrency still records a 20% gain over the past week and market sentiment still leans optimistic about the potential for future profits. Jeff Dorman CIO for investment firm Arca commented the following on recent developments and their potential to impact Bitcoin:<\/p>\n
If you\u2019ve ever wondered whether or not trading bots control digital asset trading\u2026keep in mind the entire digital asset market just fell on news that one company (Tesla) sold one asset (BTC) 1-3 months ago. Expect full retrace of this move quickly.<\/p>\n
Tesla stock recorded a 4% profit immediately after it published its earnings report and it approaches its highest level since June. Ludwig Wittgenstein claims the car manufacturer\u2019s decision to liquidate a large portion of its BTC holding could have long-lasting consequences for the crypto market.<\/p>\n
Tesla +4% on earnings<\/p>\n
\u00af_(\u30c4)_\/\u00af pic.twitter.com\/coOFjpsOqy<\/p>\n
\u2014 TradingView (@tradingview) July 20, 2022<\/p>\n
The Elon Musk-led company purchased Bitcoin in 2021. At that time, BTC\u2019s price was losing steam as it traded around its current levels, but when Tesla announced its decision, the cryptocurrency was able to rally into uncharted territory.<\/p>\n
The company purchased BTC as a corporate strategy to hedge against inflation and as a tool to potentially increased its cash flow. Thus, why it is important to understand the reasons behind this BTC sale.<\/p>\n
According to Wittgenstein, there are three potential scenarios, the company needed to raise cash, there are climate concerns about BTC alleged energy consumption, or a total loss of faith in the cryptocurrency. The first scenario is the most bullish, and the last the most bearish.<\/p>\n
Why Did Tesla Sold Its Bitcoin?<\/p>\n
Founder at NorthmanTrader Sven Henrich believes Tesla followed a corporate strategy when the price of Bitcoin dropped below $20,000. The company forced itself to liquidate a portion of its assets to maintain its cash flow. Henrich said:<\/p>\n
In trading terms: $TSLA got itself margin called and liquidated a large chunk of its digital asset portfolio to make itself free cash flow positive & improve its balance sheet.<\/p>\n
Related Reading |\u00a0XRP Wins Again: Bullish Rally Sees It Climb to Sixth Spot by Market Cap<\/p>\n
So far, Wittgenstein\u2019s first scenario seems to be in play. If the crypto market can stay in its current course, despite Tesla\u2019s news, BTC\u2019s price could reclaim the important area above $27,000.<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-3821","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/3821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=3821"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/3821\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=3821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=3821"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=3821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}