Bitcoin Pressured as Tesla Dumped Most of its Holdings
Tesla's (TSLA) prolific CEO Elon Musk, is known for his frequent commentary on Cryptos and also for owning some of them , according to recent tweets, while the firm also has such holdings and accepts Dogecoin (DOGE/USD) for merchandise purchases .
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. 
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. 
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.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
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
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