Bulls are back riding positive macros as crypto markets turn green again. There was some pressure on the cryptocurrency market during trading on Wednesday. But no impetus developed until later in the day when prices began to rise and Bitcoin bulls set their sights on breaking through the $23K barrier, as Tesla’s earnings report revealed no Bitcoin sales.
Tesla, owned by Elon Musk, disclosed in its Q4 2022 financial report that it did not engage in any Bitcoin transactions. With an average purchase price of $32,099 per Bitcoin, Tesla currently controls about 9,720 BTC after taking a $34 million impairment.
Given that Bitcoin now costs Tesla $32,099 on average, the company stands to gain from selling its BTC holdings whenever the price of the asset surpasses that threshold. Tesla is unlikely to sell bitcoin before it reaches the crucial $32,000 mark since doing so would mean the electric car manufacturer records losses.
Tesla’s impact on Bitcoin: Tesla was one of the first major listed businesses to invest heavily in bitcoin, helping to fuel the bullish trend that took BTC from about $20,000 to about $75,000 over the next few years.
- Tesla stopped accepting Bitcoin payments for the purchase of its cars in May 2021, albeit it had begun to lose faith in its investment due to Bitcoin’s energy use. A short while thereafter, bitcoin collapsed, falling from $55,000 to $52,000 in a matter of hours.
- Tesla has not, however, made a statement about Bitcoin mining. It’s unknown if the business intends to accept Bitcoin once more in the future. Despite the market meltdown and bad news in the cryptocurrency ecosystem, Tesla’s decision to keep 25% of its Bitcoin stockpile could signal a resurgence in interest in the crypto asset
- Additionally, Elon Musk has always been outspoken about his support for Dogecoin, Bitcoin, and other digital assets. Experts anticipate that the business is holding onto its Bitcoin hoard as a long-term investment.
Realities for investors: As investors chewed over corporate data, traditional markets traded sideways with the tech-heavy Nasdaq and S&P 500 down a small percentage point.
On the Bitcoin network, new investors and miners have been encouraged to spend and seize the chance to exit and secure rewards. For long-term holders, resilience has increased.
Since the asset’s all-time high in November 2021, the price climb of Bitcoin to $23K has elevated this indicator to “> 97.5% in profit,” which is predicted to raise the likelihood of increased sell pressure from short-term holders.
What you should know: According to data from Binance, Bitcoin’s price was repeatedly pushed downward during trade on Wednesday, reaching a daily low of $22,345 before rising again.
Due in large part to lowering inflation and economic indicators that the economy would avoid a serious downturn, Bitcoin has increased by more than 35% in January alone.
Similar to Bitcoin, Ether rose from lows at the $1,500 mark to reclaim its perch earlier this week over $1,618, a 5.4% increase from Tuesday at the same time. Numerous other well-known crypto assets were up.