This is no doubt the best week for Bitcoin since March, but it still has a long way to go. Bitcoin managed to climb above $24,300 on July 20 only to slip back to the $23,000 mark as Elon Musk’s Tesla sold 75% of its BTC. The EV company’s Q2 earnings data showed that it sold off 75% of its Bitcoin holdings to add $963 million in cash to its balance sheet.
Michael van Poppe, a crypto analyst, tweeted that not only forced selling from 3AC, $LUNA, and $UST, but also Voyager, BlockFi, and Celsius have been causing the markets to crash. He highlighted that Tesla did sell 75% of their Bitcoin purchases towards cash. As such, the market is close to the bottom again. When the Tesla news broke out, the Bitcoin price did a backtrend from its daily high of $24,280 to $22,900. It then stabilized at $23,500.
At the time of writing this article, Bitcoin was trading at $22,902 after having lost 2.07% of its value in the last 24 hours. Ethereum, down by 2,80%, was changing hands at $1,502. Much of the broader crypto market is in red. Polygon MATIC is the biggest loser, down by nearly 12% in the last 24 hours, followed by Solana which lost nearly 11% in the last 24 hours.
Omkar Godbole, an analyst, highlighted that a Bank of America survey where investor pessimism was in traditional markets, and not crypto. He brought an old Wall Street mantra that says when investors collectively feel worse and hold cash, most of the price drop has already happened. This prompts selling to stall and eventually a new bull run comes up. Anderson McCutcheon, CEO of Chains.com, said the broader markets are currently seeing a change of sentiment. Investors want to deploy cash into “stronger assets”. He believes this amplifies whatever positive news or major upgrades the projects offer.