Here’s the Crucial Silver Lining of Tesla’s $936 Million Bitcoin Bomb Sale ⋆ ZyCrypto

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Tesla sent shockwaves through the crypto world on Wednesday night after revealing that it cut its bitcoin position by 75% in the second quarter. Elon Musk explained that the sale was due to liquidity problems triggered by blockages in China.

Nonetheless, Tron blockchain creator Justin Sun has spotted a much-needed silver lining to glean from Tesla’s shock capitulation.

Why Tesla’s sale is good news for BTC

Tesla’s sale of $936 million worth of bitcoin dealt a blow to investors, but not all crypto executives cower.

According to Justin Sun, the market no longer has to worry about dumping Tesla BTC – something that has persisted in the crypto space for quite a long time. In other words, the company can no longer resell its bitcoin and more reliable market participants have acquired it.

Sun further reported that the electric vehicle giant selling nearly $1 billion worth of bitcoin demonstrates the crypto’s benchmark liquidity to big business.

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Additionally, the BTC transactions made by Tesla set a clear precedent for all companies holding the cryptocurrency on their balance sheets. This could undoubtedly encourage more big companies to buy crypto assets in the future, the controversial crypto entrepreneur postulated.

For Changpeng Zhao, CEO of the world’s largest cryptocurrency exchange, Binance, at least $100 billion worth of BTC is traded daily. That said, “someone selling $1 billion is just a drop in the ocean.”

bitcoin falters

It should be mentioned that bitcoin suffered a drastic drop in the second quarter. It fell from around $50,000 to less than $20,000 between March 31 and June 30, implying that Tesla may have sold its reserve at a loss.

After posting a six-week high of around $24,200 on Wednesday, Bitcoin retreated below $23,000 today on the wake of Tesla’s dumping announcement and the company’s interest rate hike. European Central Bank (ECB) for the first time in 11 years.

The big question is whether this shock is already priced into crypto prices or if there is a risk of a continued cascading sell-off. Musk isn’t shutting the door on bitcoin completely despite the paper hands. The centibillionaire said Tesla may increase its coin holdings in the future.


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