Tesla ended up being a bad investor, considering its loss caused by unfortunate Bitcoin market performance
The cryptocurrency market has already been disrupted by news of Tesla selling off a massive chunk of its holdings for an average price of $28,888, which is a significant 9% reduction from its average entry at 31,620. $, according to multiple sources, including Tesla’s earnings call.
As their initial earnings report suggests, the company has sold $936 million worth of Bitcoin at the price of $28,888, which coincides with the massive Bitcoin plunge we saw back in June when the cascade of liquidations sent BTC right to the $17,800 level.
Musk’s company held Bitcoin through the ATH and ended up selling at a loss, but as the entrepreneur told himself, the decision to sell digital assets was made due to the lack of positive cash flow.
The non-Bitcoin-centric reasons to sell its holdings were confirmed with the fact that Tesla still keeps 25% of its BTC and, according to Musk, is aiming at increasing its holdings in the future.
The Crypto Market Doesn’t Seem to Care That Much
Musk and his company were a major catalyst for the Dogecoin and Bitcoin rallies. Additionally, the SpaceX CEO remains bullish on decentralized technologies and believes the future will be tied to it in some way.
We also should not forget that the market’s reaction is relatively calm because of the lack of trading volume and inflows into it, which causes a lack of volatility.
The massive deal itself also couldn’t move the market that much today, as the selloff itself was made in June, when we saw Bitcoin and other cryptocurrencies hit extremely low levels. .
