The crypto space has had a good start to July, following the crash that the crypto ecosystem has encountered since May 2022! With MicroStrategy acquiring more Bitcoins and news of El Salvador buying 80 more Bitcoins circulated amidst the crypto market crash, the investors were holding onto the top cryptos to make a comeback. Following the rise in Bitcoins price this week, some investors have also started conversations on Twitter, stating this rise in Bitcoin to be ‘different this time.’
Coming to today’s breaking news, Tesla, which had previously bought a massive amount of Bitcoin which is a total of $1.5 billion, has liquidated 75% of its Bitcoin holdings. According to the shareholder letter shared by Tesla on Wednesday that was shared as part of the company’s earnings report, mentioned, “As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency,” the shareholder letter from Tesla on Wednesday also stated, “Conversions in Q2 added $936M of cash to our balance sheet.”
According to a LiveMint report, “The electric-car manufacturer disclosed in February 2021 that it had invested $1.5 billion in Bitcoin, and subsequently sold 10% of its stake that April. Tesla said Wednesday its digital assets have shrunk to $218 million, and that a Bitcoin impairment hurt second-quarter profitability.”
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The Chief Executive of Tesla, Elon Musk who has been an active ‘influencer’ for the crypto assets, has shared his concerns regarding the liquidity of the company as the reason for the sale of 75% of its Bitcoin holdings. He has also mentioned that the sale of the crypto asset has nothing to do with any verdict of his on the crypto space. The tech mogul has been well established to share his voice regarding crypto assets. His consistent tweets regarding Dogecoin, which is a meme coin, have been one of the major sources for the asset gaining huge momentary spikes in value. Along with the Tesla reports announcement regarding the sale of Bitcoins, Elon Must have cleared out any forthcoming questions regarding DOGE. He has mentioned that all of Tesla’s DogeCoins are still intact.
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As stated in the LiveMint report, “Tesla sold $936 million worth of bitcoin in the second quarter, more than a year after the company bought $1.5 billion of the crypto at the peak of its massive growth and popularity.
Musk has been an outspoken supporter of crypto. His statements on the future of crypto and disclosures about his ownership of digital assets often boost the price of DogeCoin and Bitcoin.”
However the market speculations after the Tesla news, Elon Musk has positioned himself as a pro-crypto enthusiast. He has been hinting in recent weeks that his other company, SpaceX, might just be steps away from joining Tesla in accepting his favored crypto asset, DogeCoin, for merchandise purchases in the future.
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According to the LiveMint report, Bitcoin has rebounded a total of 14% in the last 7 days and has been maintaining the value above the $20k mark but has gone down from $23k level after a brief sell-off late on Wednesday. This brief sell-offs was sparked by news that the electric carmaker, Tesla had sold 75% of its holdings of the virtual token. Bitcoin has been in recovery mode so far this week, in line with the stock market, as investors appear more optimistic about the U.S. Federal Reserve’s ability to rein in decades-high inflation.