The retracement from Wednesday wiped out most of the gains since Tuesday, following the extreme risk in the price of bitcoin on Tuesday. Traders blame Tesla’s Q2 earnings report.
Bitcoin price has been hovering around the $20K level since mid-June. Markets are watching closely to see what bitcoin whales will do next. Tesla on Wednesday reported dumping 75% of its bitcoin. As a result, markets panicked and erased Tuesday’s gains.
Tesla Dumps BTC for Cash, Anonymous Whale Moves 242K Bitcoins
In an earnings call on Wednesday, Elon Musk said:
“The reason we sold a bunch of our bitcoin holdings was because we were unsure when the COVID lockdown in China would ease, so it was important for us to maximize our cash position. This should not be taken as some judgment on bitcoin. should.”
Adding to market concerns, whale addresses garnered around 242K BTC on Coinbase throughout the week. This is a cryptocurrency worth over $5.4 billion at today’s exchange prices. It was the third richest address on the blockchain. There has been a lot of speculation that it was Michael Sayer’s microstrategy wallet that may have added some price resistance this week as well.
After Tesla recently sold most of its stake, there is some panic in the crypto community that Microstrategy will soon follow suit. But blockchain researcher Jarvis Labs called speculation about microstrategy “noise” in a tweet thread on Thursday.
1/9 Much noise and news about ‘perceived’ micro-tactics #B T c The wallets are completely running out. Tesla’s partial exit from BTC holdings in its coffers only adds to the noise. Let’s take a look at this thread.
— JarvisLabs (@Jarvis_Labs_LLC) 21 July 2022
Jarvis Labs also informed that this wallet has been accumulating since 2019. According to federally required regulatory financial disclosures, MSTR did not make its first BTC purchase until 2020.
It is highly unlikely that the company has lied to the SEC and investors about its balance sheet. This casts a lot of doubt on the assumption that the wallet and 240+ thousand bitcoins belong to MicroStrategy.
Jarvis concluded:
“Wallet labels are incredibly complex and a sensitive subject. Since they lack confirmation from the party concerned most of the time. So take such noise with a grain of salt. Relax, it’s not selling yet, even though Let us assume that this was the MSTR wallet of the seller.
Cryptoquant CEO Ki Young Joo on Wednesday cast further doubts on the rumor.
Cryptoquant: Whales move internally
Ki said the transfer contains all traces of an internal transfer, not a transfer by a user to an exchange. And they think the addresses belong to Gemini, not MicroStrategy or Coinbase. The CEO of Cryptoquant concluded, “This is FUD.”
This is FUD.
This is just an internal transfer to “1LQoW…”, which can be a cold wallet or custodian wallet, which is highly likely to be owned @Gemini,
What is clear is that this is not a user deposit for exchanging hot wallet to sell $BTC, not at all. https://t.co/ieLJ7QEw5T pic.twitter.com/1ianKMwKoW
— Ki Young Joo (@ki_young_ju) 20 July 2022
Even if it was the address of a user who was visiting the exchanges, it is purely speculation that the reason is to sell. Ki commented on the massive influx between spot exchanges such as Coinbase and crypto derivatives exchanges earlier this month.
He Told These data suggest that whales are piling up their bitcoins as collateral for bitcoin futures. This could be a sign that bitcoin is oversold and a cyclical bottom is near.
If that’s not enough to stifle “FUD”, Michael Sailor himself Tweeted Diamond Hands As recently as Thursday 29 June, MicroStrategy has bought $10 million more bitcoins amid rumors.
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