• Sat. Sep 24th, 2022

Cryptocent, a blockchain analysis company

Bywiret

Aug 7, 2022

Tesla, a U.S. electric vehicle manufacturer, said in a quarterly report released on the 20th of last month (local time) that it has disposed of 75% of its Bitcoin.

In February last year, CEO Elon Musk said, “I won’t sell my Bitcoin,” when I bought $1.5 billion worth of Bitcoin with cash assets

It failed to overcome the price plunge that has continued since November last year and began to dispose of it in large numbers. Bitcoin prices halved from $56,000 on April 1st to $25,000 on June 30th

Tesla was quick to sell it just before it lost money and made a profit of $64 million.

Arkane Research estimated that Tesla sold 29,060 bitcoins for an average of 32,209.

Bitcoin prices, which were around $32,000 to $33,000 at the time of Tesla’s purchase, are currently in the $22,000 range.


Many analysts say Tesla’s disposal of a large amount of Bitcoin is due to its prediction that prices will fall further in the future.

In the coin industry, the price of Bitcoin, a cryptocurrency leader, is also widely expected to fall further than now.

This is because international oil prices are rising due to the energy crisis and inflation (continuous inflation) pressure caused by the aftermath of the Russia-Ukraine war, affecting bitcoin mining companies.

Bitcoin issuance (mining) is extremely power-consuming as it is done with a large number of computer operations, and the operating costs of mining companies have also increased significantly as power rates have risen.

Mining companies, whose profitability has deteriorated, are coping by selling more bitcoin than they mined. More bitcoin is being released in the market, fueling the price decline.

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