Binance CEO Changpeng Zhao says the amount of bitcoin Tesla liquidated during the second quarter was “a drop in the sea”.
one in Recent TweetBinance CEO Changpeng Zhao downplayed the importance of Tesla’s recent bitcoin sale, claiming that its holdings were “a drop in the ocean.”
Zhao estimated that $100 billion worth of bitcoins are traded every day.
As reported by U.Today, the major e-car maker announced that it has liquidated $936 million worth of bitcoin during the second quarter of 2022, causing a shock wave in the cryptocurrency community. The company sold 75% (appears to be at a loss) of its remaining crypto holdings.
Tesla CEO Elon Musk dismissed crypto as a “sideshow” during a conference call, but he also clarified that the recent sale was not a “judgment” on bitcoin. Despite his climate concerns, the entrepreneur did not rule out adding to his company’s current crypto position in the future.
Bitcoin declined sharply below the $23,000 level on Tesla news. The e-car maker’s U-turn dismantles another bullish bitcoin narrative about corporate adoption. After Tesla made an unconventional decision to add bitcoin to its balance sheet in early 2021, it was believed that other major companies, such as Facebook or Apple, would follow suit. However, corporate adoption of cryptocurrency almost went nowhere. With Tesla jumping ship, it’s safe to say that other big names are highly unlikely to make bitcoin a part of their corporate coffers.However, some bitcoin enthusiasts saw a silver lining. As Tesla’s cryptocurrency holdings have dwindled dramatically, the company’s highly volatile CEO will not be able to easily influence the price of the largest cryptocurrency.