Elon Musk confirms Tesla has not sold its Bitcoin holdings, but price remains down

midian182

Posts: 6,778   +61
Staff member
What just happened? Elon Musk is at it again. After crashing the price of Bitcoin last week when he announced Tesla would no longer accept the crypto as payment, BTC sunk to a 3-month low following Musk's hint that the EV giant is considering or may already have sold some of its Bitcoin. He's now confirmed that his company has not sold any of its holdings, but the price remains below $46,000.

Bitcoin's booming price hit an all-time high in February when Tesla announced it had invested $1.5 billion in the crypto and would soon be accepting it as payment for its products. But Musk reversed the latter decision last week, citing the environmental concerns surrounding Bitcoin mining. The move saw BTC's price plummet 17%, though it did rebound slightly.

Musk dealt another blow to Bitcoin over the weekend when he appeared to agree with a tweet that implied Tesla would sell or may already have sold off its bitcoin holdings.

User @CryptoWhale tweeted: "Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their Bitcoin holdings. With the amount of hate [Elon Musk] is getting, I wouldn't blame him." To which Musk replied, "Indeed."

Musk just tweeted that Tesla has not sold its Bitcoin holdings, steadying its price. At the time of writing, BTC still remains beneath $46,000.

Tesla revealed in March that it had sold 10% of its Bitcoin holdings. And while that did affect the crypto's price, the impact was softened by Musk's assurance that the sale was to demonstrate its "liquidity." The world's second-richest man also said he hadn't sold any of his personal Bitcoin holdings, though how much he owns is unclear.

Musk's actions have been affecting Dogecoin's value, too. He sent the price tumbling 35% last week when he described it as a "hustle" during his appearance on Saturday Night Live, though he helped Doge make back some of the losses by proposing an upgrade to its efficiency and tweeting a poll asking if Tesla should accept it as payment.

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QuantumPhysics

Posts: 4,882   +5,403
Bitcoin is currently $45,245
Tesla is currently $589

What very few people seem to recognize is the fact that traditional buyers of ETF/commodities/stock do not typically want exposure to crypto (I refuse to call it a currency because it is not nor will it ever be).

Tesla started falling almost immediately after Elon musk announced that he purchased bitcoin. Tesla stock was at a high of $880. I’ve been investing in Tesla since 2012 when it was just $30. I drove people to buy Tesla right before they did the split last year. I never imagined that Moscow do something so stupid as to risk the companies future on crypto.

If you want to risk his own money: fine.

He could easily have thrown 1 billion into dogecoin or 1 billion into bitcoin or 1 billion into Ethereum. But he had no right risking shareholder money.

I have no problem imagining that test was shared values are going to rise again especially when the majority of the sales are being made in China and he has a cheaper version of the model free as well as a cheaper smaller car coming soon as well as the cyber truck coming eventually. The biggest problem right now is the chip shortage but had they handled their marketing better the value of the stock did not have to suffer during this time.
 

Achaios

Posts: 120   +365
Unfortunately ETH rose again to 2900 euros up from around 2.5k when it took the plunge earlier today.

Looks like we will never see a crypto crash.
 

Shadowboxer

Posts: 1,490   +1,087
And all over social media people are blaming Musks tweets for their cryptowallet value going down.

This statement would be gibberish to someone in 2005.

I don’t understand crypto, I know how it works, I understand what is happening on a digital level. But how it’s valued escapes me completely. Sometimes I wonder if Musk is trolling us, like he sees a change before most of us then says something publicly to make us think he’s manipulating it when he’s not.
 

Kosmoz

Posts: 191   +293
But how it’s valued escapes me completely.
It's valued on trust, influence, perception.

More bigger players enter the crypto market now than ever, so a market crash to the bottom will probably never happen, at least not as low as before. The minimum will still be high enough...

The main gist is that, the big fish support and control most of the crypto and they manipulate it how they wish, but because more of them are joining it won't ever crash completely. Their interest is to hold as much of it as possible for long term (whoever will have the most BTC in 10 years will be also the richest in the world - because BTC is finite) and in short term to "play" it for quick gains by speculating - influencing the little fish.
 

eforce

Posts: 173   +192
Most people confuse current price with fundamental value, of which Bitcoin has none, a simple way to calculate fundamental value of anything is what you can do with it if no one else wants it, with Bitcoin (inc. digital fiat) the answer is nothing,

I should also point out I trade crypto and mine eth, I recognize it's speculative value but I'm not retarded enough to actually believe it has a long term future and profits go into buying precious metals.

Also once enough laws are passed globally to prevent manipulation/stablecoin overprinting, it will descend back towards its fundamental value, zero.
 

emmzo

Posts: 293   +259
I don`t really care about Bitcoin, although it has an influence on all alt coins, but mainly ETH, because it`s the main cause of the wide spread videocard mining that has been devastated every gamer`s hopes, I mean most of us not lucky enough to get one in the early days of January. Unfortunately, ETH rose to the roof and even if it stalled for the moment, it looked like it has potential to go even further and bury us alive... As for Musk and his shenanigans, I believe all his actions are very carefully set up and you can smell bullshit a mile away: suddenly, after years of destroying the environment and whatnot he got self conscious and btw, his beloved Doge is just as bad, being a fork of a fork of Bitcoin and... drumroll, he`s not selling anything, but he will, most likely, buy even more when the price dips to his desired minimum. When is that? Well, he will surely tell us that suddenly again, all Chinese farms went ecofriendly and then you`ll see Bitcoin just fine and go to 100k.
 

Kosmoz

Posts: 191   +293
Also once enough laws are passed globally to prevent manipulation/stablecoin overprinting, it will descend back towards its fundamental value, zero.
That will only happen the day electricity ceases to exists en masse / internet will die all over the world / or it's WW3 with mutual assured destruction.

Anything less than that, no one can regulate or stop the crypto market and at some point it will surpass gold standard in every aspect, and any other currency for that matter...
 

NightAntilli

Posts: 610   +747
In other words, it is valued on nothing.
Influence, perception and trust are nothing... Ok...

Why are you posting then? Because posting is pretty much exerting influence, which, according to you, is nothing.
Posting is sharing your perception, which according to you, is nothing.
Posting in your case is destroying your trust, although I guess in this case we are destroying nothing...

All that being said, those are not the things that value Bitcoin necessarily.
No trust is required. You either understand it, or you don't. If you understand it, you don't need to trust it, and if you don't understand it, you will not trust it. Simple as that.

Influence? That maybe influences the short term price action, but not the overall trend. The price is increasing in spite of the news, not because of it.

Perception? All you have to do is look at the amount of naysayers on Techspot. The perception has not been in favor of Bitcoin, and yet it still rises.

Bitcoin is valued like it is because of its fundamentals. It's not following its stock to flow model fairly consistently for nothing.
 

Godel

Posts: 262   +160
What happens if you "buy the dip" but it keeps on dipping???
You don't consider buying until the dipping has stopped and is showing signs of reversing. That's where basic charting comes in handy.

Nevertheless I won't be buying any Bitcoins any time soon.