Bitcoin can retrace down after having its first ‘crème de la crème’ week since March, up 10% since Sunday, while ether (ETH) is up 11%.
Bitcoin was sold by Tesla
Tesla announced its Q2 earnings call on July 20, 2022. The major highlight of the news included Tesla’s selling off 75% of its Bitcoin holdings. They were worth approximately $936 million, as noted in its Q2 earnings report.
Elon Musk isn’t making the hodler list as his electric car company projected in its investor deck that it had converted 75% of its Bitcoin holdings into fiat currency.
Tesla sold over three-quarters of its Bitcoin holdings due to uncertain COVID lockdowns in China. Thus, it was significant for Tesla to maximize its liquidity position in such turbulent times.
Despite the fact that China had eased COVID restrictions, cities at a rise cases in Beijing and other associated vital regions have prompted the government to re-instate the rules after a few weeks. At the start of July, mass testing schemes and lockdowns were set up in Shanghai.
Bitcoin is currently having its first ‘crème de la crème’ week since March, but with the FED still fighting inflation, it seems like the only thing that can get traders enthusiastic is the forthcoming Ethereum Merge.
Inflation in June
While Coming into the third quarter, some market-watchers believed inflation was peaking.
On the contrary, the interest rates slipped from their recent peak. Investors felt the FED might undo its aggressive monetary tightening. While Traders were betting on interest-rate cuts in 2023, equities rebounded amid a relatively positive mood.
That changed last week. The latest CPI report showed scorching-high inflation, with prices rising 9.1% year-over-year in June. The numbers sparked immense volatility. Both bond and currency markets reacted immediately, and concerns were re-orchestrated about more aggressive rate hikes.
Or possibly, a recession.
Can Bitcoin Bottom Out?
While the crypto total market cap broke above the $1 Trillion mark again after a relief rally. Bitcoin broke the $22.5k resistance. The digital currency has officially confirmed a breakout to reach $24,000.
While the breakout has is on the support from the relevant volumes, the active whale buying is yet to show up.
Further highlighting the long-term trends, it is still printing bearish terms. As the markets are in tandem with the lower highs and lower lows patterns, there is a good possibility of manifestation of the latter.
Nevertheless, on Wednesday, the bull rally appeared to fade while the news keep flashing headlines on the remaining carnage in the crypto industry – the residuals of the price crash.
The sign of the great fuss that preceded bankruptcy filings from the problematic crypto platforms Voyager Digital and Celsius.
At the present time, the news of the asset freezes is from the basket of a Singapore-based cryptocurrency exchange, Zipmex. They allegedly advanced $100 million to Babel Finance.
Interestingly, one cryptocurrency lender, Vauld, filed for protection against its Singaporean creditors. This Peter Theil-backed lender filed for protection just some days after pausing withdrawals.
Vauld, reportedly owed almost about $402 million to creditors. Its investors also include Pantera Capital and Coinbase Ventures.
Going forward, it is clear that the current relief rally was not supported by any whale activity. Although the current target of touching $24,000 might need a re-test.