It turned out that electric car maker Tesla sold 75% of its Bitcoin assets last quarter. By doing this, the world-famous company added over $936 million to its balance sheet. Tesla CEO and famous Dogecoin advocate Elon Musk talked about BTC sales. The CEO expressed that it is important to maximize cash positions. He explained the reason for this as the lockdown and closure of the Shanghai factory in April. As sales emerged, allegations of market manipulation exploded. Many analysts and prominent crypto personalities have criticized Tesla. But Tron founder Justin Sun, on the contrary, thinks it’s good news. Here are the details…
Tron founder: “Great news that Tesla is selling Bitcoin”
Many prominent crypto analysts and crypto influencers view Tesla’s Bitcoin sale negatively. This is because Tesla sales have the potential to put negative pressure on the BTC price. Tron founder Justin Sun, on the other hand, disagrees. According to him, Tesla’s BTC sales have the potential to be great news for Bitcoin holders. Justin Sun also explained the reasons for his point of view. Here are the reasons why Sun described the sales as “great” for the Bitcoin ecosystem. Let’s see together.
According to the Tron founder, the market no longer needs to worry about Tesla’s portfolio, which has plagued longtime BTC advocates. Bitcoin holders no longer have to fear Tesla selling their BTC. Second, Sun argues that Tesla’s BTC funds provide insight into institutional investors’ assets. Accordingly, Tesla sold $ 1 billion worth of BTC. This value reveals the BTC liquidity in the hands of institutional investors. Finally, Tesla, which completes Bitcoin transactions, makes a good priority for all businesses holding BTC. Sun states that he believes larger investors will buy BTC in the future. Then he thanks Elon Musk for the sales.
Bitcoin (BTC) price corrections
The news that Tesla sold its BTCs revealed some price pressure on Bitcoin. By Wednesday, the BTC price had surpassed $24,000. However, Bitcoin corrected below 23,000 after that. Additionally, it is currently trading close to its 200-week moving average of $22,800. The 200-week MA has acted as a major resistance for Bitcoin over the past few weeks, as we reported on cryptokoin.com. That said, it will be interesting to see if BTC can sustain these weekly close levels. Popular crypto market analyst Rekt Capital explains:
“BTC is 6% above the 200-week MA. To retrace the 200-week MA as support, BTC needs a weekly close above $22800.”
Elon Musk talked about BTC sales
Elon Musk said that the sale of Bitcoin should not be seen as a “decision” made by the company. He also added that Tesla “will be open to increasing Bitcoin holdings in the future.” However, the current uncertainty in the global macro environment persists. Therefore, Tesla’s new purchase is unlikely to happen anytime soon. However, Tesla did not sell any of its Dogecoins, despite selling BTC.
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