Immediately after the earnings report was published, the price of Bitcoin lost almost 2% in value, and the flagship digital asset now finds itself trading below $23,000 as of July 21. Nevertheless, the global crypto market cap is still worth $1.03 trillion, a 2.52% decrease over the last day, with the Tesla news seemingly impacting the market. In particular, the total crypto market volume over the last 24 hours is $93.55 billion, an 8.06% decrease, according to CoinMarketCap data retrieved by Finbold.
Bitcoin’s price drops
After the results report was published, there was an instant drop of around 1.6%, which caused the price of bitcoin to drop to $23,300. However, the cost of Bitcoin quickly rebounded to its prior levels after Musk made his remarks during the earnings call. Currently, Bitcoin is trading at $22,760, down 3.81% in the last 24 hours, with a total market worth of $434.6 billion.
Musk justifies selling Bitcoin
Elon Musk said on July 20, regarding the company’s earnings report, that Tesla sold most of its Bitcoin to maximize its cash position. Musk said: At the end of the second quarter, Tesla had a total of only $218 million in Bitcoin, which is a significant decrease from the $1.26 billion it had in Bitcoin throughout the preceding three quarters. Tesla possessed around 42,000 Bitcoin at the beginning of the quarter; if 75% of these were sold for $936 million, the average selling price per Bitcoin would be approximately $29,000. Bitcoin’s price at the end of the second quarter was almost $18,700, thus Tesla avoided a significant impairment charge on its holdings by selling earlier in the quarter. Notably, Tesla still owns over 10,000 Bitcoin. The acquisition of $1.5 billion worth of Bitcoin by Tesla was reported in February 2021, causing a jump in the price of bitcoin as a direct result of this news. Later in the first quarter, the corporation sold 10% of its Bitcoin holdings, resulting in a $272 million profit increase. Before the most recent disclosure, it had not purchased or sold Bitcoin. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
