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The cryptocurrency market has already been disrupted by the news that Tesla sold a huge chunk of its holdings for an average price of $28,888, which is a significant 9% discount from the average entry of $31,620, according to numerous sources, including Tesla’s earnings call.
As their initial earnings report suggests, the company has sold $936 million worth of Bitcoin for the price of $28,888, coinciding with the massive Bitcoin decline we saw in June when the cascade of liquidations sent BTC straight 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-focused reasons for selling his holdings were confirmed by the fact that Tesla still retains 25% of its BTC and, according to Musk, aims to increase its holdings in the future.
Musk and his company were one of the main catalysts behind Dogecoin and Bitcoin rallies. In addition, the CEO of SpaceX remains optimistic about decentralized technologies and believes that the future will be connected to them in some way.
We should also not forget that the market reacts relatively calmly due to the lack of trading volume and inflow into it, which causes a lack of volatility.
The massive deal itself couldn’t move the market that much today either, as the sale itself took place in June when we saw Bitcoin and other cryptocurrency hit extremely low levels.
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman is convinced that cryptocurrencies and the blockchain will be used constantly in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.
Disclaimer: All financial and market information provided on U.Today is for informational purposes only. Do your own research by contacting financial experts before making any investment decisions.