Key Insights:
Tesla has moved 11.509k Bitcoins from its old wallet to an unknown new wallet.
The transfer could either be a routine security move or could be to sell them.
If Tesla sells $770 million worth of Bitcoins, it is unlikely to dent the crypto markets for long as daily volumes in BTC exceed $50 billion.
In a surprising move, Tesla has moved all of its Bitcoin, $770 million in worth to new addresses. The move was probably aimed at changing the wallet addresses, which has been a routine security move. The news was shared by Arkham Intelligence.
However, there has been speculations that the Elon Musk-led car company might be prepping its entire stash of 11.509k Bitcoins for a sale.
Meanwhile, Bitcoin has crossed $68k at press time and is rapidly moving towards $70k, its next and most critical resistance. Beyond this level, there lies only a single resistance at $73.7k. Earlier, Bitcoin has reversed from these levels.
The move has given rise to speculations that indicate Tesla might possibly sell its entire Bitcoin holdings. The company had earlier sold the majority of its holdings in 2022 despite a loss.
Tesla had bought $1.5 billion worth of Bitcoins in February 2021. At its peak, Tesla was estimated to have held $2.5 billion worth of Bitcoins.
During the same time, the company also announced that it would allow Bitcoin payments for its products but did not execute it.
The company is still the fourth largest publicly listed company to hold Bitcoins after Microstrategy, Riot Blockchain, and MARA Holdings.
Elon Musk has been well known to be a Dogecoin supporter and had recently won a case against a plaintiff who filed a $258 billion lawsuit against him.
In an interview with Telsa Owners, Musk revealed his view on Bitcoin, saying Bitcoin might have some merit but his soft spot was for Dogecoin.
The billionaire entrepreneur who now holds several large tech companies like SpaceX, Tesla and X.com (formerly Twitter) has a rocky past with crypto. Even after announcing crypto payments multiple times, the entrepreneur has walked back on his talk. Though it eventually allowed consumers to buy Telsa merchandise with Dogecoin, yet this payment method does not allow users to cancel their orders.
Further, several times Elon Musk has made tweets on Dogecoin, each time invoking DOGE holder sentiments.
Within a day of crossing $67k, Bitcoin has managed to cross and stay above $68k at press time. However, BTC could not sustain at higher levels and soon corrected to $67.8k. The increased bullishness in the top crypto stems from the increased liquidity in the markets and the increase in inflows in Bitcoin ETFs.
Bitcoin Crosses $68k on 16 October 2024
CoinMarketCap
Tesla's move, if it wants to sell the Bitcoins, could slightly dent the crypto's price but it is unlikely to have any major impact on its price. This is because the 11k odd Bitcoin would easily get absorbed into the market. At press time, Bitcoin's last 24-hour trading volume was around $53 billion, way higher than what Tesla aims to sell.
In the next few weeks, Bitcoin may create a new ATH above $73k and then we expect the prices to correct a bit before resuming its upward journey toward $100k.
Its best to hold Bitcoins irrespective of the current speculations. If Tesla sells its Bitcoin reserves, it would put a small but recoverable dent in the markets.
Further, the liquidity in the markets, increased demand for Bitcoin, ETF inflows, and institutional investments are likely to keep Bitcoin going higher in the current quarter.
However, it still remains an individual choice of what crypto owners do with their holdings.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.