Bitcoin Price Falls Below $23,000 After Earnings Report Reveals Tesla Sold 75% Of BTC
“Easy come, easy go” was the story on 20 July. The day started on a positive note with Bitcoin (BTC) climbing above $24,300, only to end the official trading day in the red after less than stellar Q2 earnings news showed Tesla selling 75% of Bitcoin and Minecraft creator Mojang Studios reversing course by deciding to ban NFTs on the platform.
A potential source of the afternoon decline can be traced to Tesla’s second-quarter earnings data, which showed the electric car company sold 75% of its Bitcoin holdings to add $963 million in cash to its balance sheet.
So, not just forced sales from 3AC, $LUNA & $USTbut also Voyager, BlockFi and Celsius have caused the markets to crash.
On top of that, Tesla sold 75% of its #Bitcoin purchase for cash.
That’s what caused the crash.
That is also why we are near the bottom.
— Michaël van de Poppe (@CryptoMichNL) 20 July 2022
Shortly after the Tesla news broke, the Bitcoin price retreated from its daily high of $24,280 to $22,900, before stabilizing around $23,500.
Related: Bitcoin price hits $24K, but analysts say on-chain data points to an ‘inevitable’ pullback
Traders’ bullish estimates may have been premature
Today’s unexpected pullback may also have helped bring some market perspective to crypto traders who were ready to call for an end to the bear market.
Many of you haven’t made it through the first few months of a bear market, and it shows.
You get excited over dead cat bounces and bull traps, act like a quick pump is the end of the bear cycle.
Unfortunately, there is only one way to learn.
— Vlad “BTCTKVR.com” Costea ⚡️ (@TheVladCostea) 19 July 2022
While the pullback for Bitcoin has been relatively mild so far, several altcoins experienced steeper falls as recent price gains created a nice opportunity for traders to book some gains.
Ethereum tier-two solution Polygon saw an 11.5% decline after a week in which its token value increased by 87%. Arweave (AR) saw its token price drop by 10.84% and Filecoin (FIL) experienced a 10.2% decline.
On the flip side, the only tokens in the top 100 that have managed to hold on to positive gains for the day are Steem (STEEM) and Reef (REEF), which recorded small gains of 6.27% and 3.15% respectively.
The total cryptocurrency market capitalization is now at $1.035 trillion, and Bitcoin’s dominance rate is 42.7%.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
