The price of the largest cryptocurrency Bitcoin (BTC) is down by more than 2% in the last 24 hours after the electric car manufacturer Tesla sold 75% of its bitcoin holdings in the second quarter, which added $936 million of cash to its balance sheet. The Bitcoin price fell below $22,700 after this announcement and as of this writing, the crypto pair slightly rebounded back to near $23,000.
“As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency. Conversions in Q2 added $936M of cash to our balance sheet,” - Tesla said.
Tesla on Wednesday announced better-than-expected second-quarter financial results. Tesla stock jumped 1% in extended trading on Wednesday while shares are down almost 30% from the beginning of the year.
Goes to show that Tesla and Musk aren’t the market. I’m sure them selling added to the downward price pressure recently, but we didn’t exactly crash and burn…
Musk is a shrewd person; the way he manipulates the media and the world is commendable. And Musk is up to something. In May 2021, they tweeted a diamond with hands emoji and told the world that they won’t be accepting any Bitcoin for car purchases. They said that they won’t sell Bitcoins either.
But they sold this year, having broken the promise they had made with the world. All we can say is that a lot can change in a year.
I don’t think many people are going to follow Musk any more. Everyone is quite well-versed with the way he manipulates the world. Thankfully, we have more bitcoins available to be played with.
This is what we call pump and dump. Tesla bought BTC seeing this everyone bought BTC then once it reached certain price Tesla sold for a profit. Those realised it would have been saved while others had lost thousands of dollars in process.
But the thing is no one is taking crypto seriously even though we have cutting edge technology in finance and not to mention blockchain is not only limited to crypto and transaction it can do all sort of things but still people love their old paper money and use crypto as way of get rich quick scheme.
Elon Musk even seems to have a negative effect on Dogecoin. After reaching its peak of 1,287 satoshis in 2021, the day after Musk served as a guest host on Saturday Night Live, which featured a comedy titled The Dogefather, the DOGE/BTC trading pair has dropped by 75%.