Tesla sold his Bitcoins, and you did or will you?


Last week, Tesla made headlines with its quarter when CEO Elon Musk revealed that the company had sold 75% of its Bitcoin (share BTC) originally purchased in January 2021.

At the time, Musk announced on Twitter that the company had bought $ 1.5 billion worth of Bitcoin as an alternative to holding cash. But now that same bitcoin has been sold off because Tesla was facing an uncertain manufacturing environment in its Chinese markets.

Due to the ongoing Shanghai plant closure due to COVID-19, Tesla’s production was severely damaged in the second quarter. In the midst of the lockouts, Tesla’s managers have no idea when end ends or when the employees could get back to work. Therefore, the company needed additional cash to secure the power to overcome any remaining lockout related. By setting up a cash reserve, the company decided to sell three-quarters of its bitcoins.

In the database, all information includes the Earnings report, Tesla appears to have sold in May, when the price of Bitcoin was hovering around $ 30,000. By selling at that moment and not at the peak of Bitcoin, which dropped well to $ 19,000, Tesla limited the time wasters that he immediately shortened if he had waited any longer.

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The sale added nearly $ 950 million to Tesla’s balance sheet. If the company were to sell close to the $ 20,000 price of Bitcoin, that number would drop 30% to around $ 650 million. At a time when dollars matter, Tesla avoids bitcoin’s worst decline and starts liquidity in China’s worsening situation.

Why not follow Elon this time

Unless you’re short on cash and need to run an international business like Tesla, I don’t recommend selling your Bitcoin. If anything, it could be a great time to compare.

One of the most reliable technical indicators of Bitcoin is the 200-week moving average (WMA). The price of Bitcoin has dropped to the bottom of the 200 WMA line only twice: in the fall of 2015 and in the case of COVID-19 in March 2020. In the second half of the year, the two periods offered no more such an opportunity to trade. acquisition. Now Bitcoin is in similar territory to 2015 and 2020. Around mid-June, the price plunged below the WMA 200 and stayed there for nearly a month. Only recently climbed, but only for a few days before dropping below again.

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If the technical indicators aren’t enough for you to continue holding your Bitcoin, then I can discuss the comments made by Musk during the same earnings call. After commenting on the sale, Musk specified that the Decision should not be taken as a verdict on Bitcoin and that the company will seek to increase Bitcoin shares in the future.

It looks like Musk and Tesla are still interested. Even though it is in fact that the Rotano to the power company has not consented to aggregate a Tesla invested in the remaining 10,000 bitcoins, I commented to Musk that it is stated that the Seems Still Believe in cryptocurrency is original.

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