Bitcoin Pressured as Tesla Dumped Most of its Holdings
BTC/USD Analysis
Tesla's (TSLA) prolific CEO Elon Musk, is known for his frequent commentary on Cryptos and also for owning some of them [1], according to recent tweets, while the firm also has such holdings and accepts Dogecoin (DOGE/USD) for merchandise purchases [2].
The leader of the electric vehicle (EV) market, Tesla Motors Inc, released on Wednesday its financial result for the second quarter of the year, revealing that it had sold most of its Bitcoin holdings. [3]
The company said that it has converted approximately 75% of its Bitcoin purchases into fiat currency, as of the end of Q2, adding $936M of cash to its balance sheet. Mr Musk attributed the move to the need for more cash, due to uncertainty around the China Covid-19 lockdowns.
He also clarified that this should "should not be taken as some verdict on Bitcoin", adding that Tesla (TSLA) is "certainly open" to increasing its Bitcoin holdings in future and that it has not sold any of its Dogecoin. [4]
BTC/USD had erased around 60% of its value during the second quarter of the year and the broader Crypto rout, having plunged to the lowest levels since December 2020 in June (18,597). During the current month however, it has staged a noteworthy recovery.
It gains around 10% on the week, as broader market sentiment has shown improvement and expectations around the size of Fed's next rate hike have cooled, testing the 38.2% Fibonacci June High/Low decline - something for which we had in our last analysis.
This brings the 25,000-25,178 region in its eyesight, although a catalyst will likely be required for a convincing extension of the recovery above it, which could then test the 28,000 mark.
The popular cryptocurrency faces difficulties today and as long as the correction continues to be limited at the EMA200 and the aforementioned Fibonacci level, a resumption of the downtrend is likely. This could send BTC/USD back towards the 20,000 region, although fresh two-year lows have a high degree of difficulty at this stage.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 21 Jul 2022 https://twitter.com/elonmusk/status/1503222294277197829 | |
| Retrieved 21 Jul 2022 https://twitter.com/elonmusk/status/1481873421390680065 | |
| Retrieved 21 Jul 2022 https://tesla-cdn.thron.com/static/EIUQEC_2022_Q2_Quarterly_Update_Deck_J8VLIK.pdf | |
| Retrieved 18 Apr 2026 https://www.youtube.com/watch |
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