Electric carmaker Tesla sold 75% of its Bitcoin holdings last quarter adding more than $936 million to its balance sheet. Tesla CEO Elon Musk said it was important for them to maximize their cash position owing to the lockdown and shut down of its Shanghai factory in April.
While many believe Tesla’s Bitcoin selling could create negative pressure on the BTC price, Tron founder Justin believes that it could be great news for Bitcoin holders. Sun explained three points why he believes the news to be great for the Bitcoin ecosystem.
- Market no longer needs to worry about @Tesla selling BTC which has been haunting us for a long time.
- Tesla selling nearly 1 BIL USD worth of BTC shows the liquidity of @Bitcoin to all big corps.
- Tesla completing @Bitcoin transactions shows good precedence for all enterprises holding BTC. We believe more big corps will buy in the future. Kudos to @elonmusk!
Bitcoin (BTC) Price Corrects
The news of Tesla selling their BTC has certainly put some price pressure on BTC. On Wednesday, the BTC price surged all the way past $24,000.However, BTC has corrected under 23,000 for now and is trading close to its 200-week moving average of $22,800.
Over the last few weeks, the 200-week moving average has served as major resistance for Bitcoin. However, it will be interesting to see whether BTC could sustain these levels of a weekly closing. Popular crypto market analyst Rekt Capital explains:
BTC is +6% above the 200-week MA. To perform a reclaim of the 200-week MA as support, $BTC needs to Weekly Close above $22800.
#BTC is +6% above the 200-week MA
— Rekt Capital (@rektcapital) July 20, 2022
Elon Musk has said that the selling of Bitcoin shouldn’t be seen as a “verdict” by the company. He also added that Tesla would be “certainly open to increasing our bitcoin holdings in the future”. However, this is unlikely to happen anytime soon considering the current uncertainty in the global macro environment. Interestingly, Tesla hasn’t sold any of the Dogecoins it holds.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.