What's Hot

    Alternative Media Attacks Bitcoin: A Response To “Bitcoin Cannot Free Palestine”

    July 27, 2022

    Bullish Sentiment Spills Over To Institutional Investors As Ethereum Inflows Balloons

    July 27, 2022

    Wanchain AMA with Marketing Director Temujin Louie

    July 27, 2022
    Facebook Twitter Instagram
    • Altcoins
    • Bitcoin
    • Ethereum
    • Blockchain
    Facebook Twitter Instagram
    Guide to Crypto and Altcoins
    • Bitcoin

      Alternative Media Attacks Bitcoin: A Response To “Bitcoin Cannot Free Palestine”

      July 27, 2022

      Crypto Traders Split on Upcoming Fed Rate Hike’s Impact on Bitcoin

      July 27, 2022

      Bitcoin holds $21k – crypto rally still on

      July 27, 2022

      TA: Bitcoin Price Consolidates, Why Recovery Could Be Capped

      July 27, 2022

      Bitcoin Is Global Money For An Interconnected World

      July 27, 2022
    • Altcoins
    • Ethereum

      Bullish Sentiment Spills Over To Institutional Investors As Ethereum Inflows Balloons

      July 27, 2022

      Technical Analysis – Ethereum Price (ETH/USD) – 27/07/22

      July 27, 2022

      Massive Ethereum Supply Shock Incoming As ETH Prepares To Outpace Bitcoin: Raoul Pal

      July 26, 2022

      “Crypto King” Barry Silbert Hyping Up Ethereum’s Merge Upgrade

      July 26, 2022

      Institutional ETH sentiment turns positive after 11 weeks of outflows

      July 26, 2022
    • DeFi

      DeFi.org Announces Four Leading Participants in Its Polygon-Led Accelerator Program

      July 26, 2022

      DeFi Tokens Lido, Curve Follow Ethereum into Bear Territory

      July 26, 2022

      DeFi Total Value Locked (TVL) Soars By More Than $10 Billion

      July 26, 2022

      This little-known DeFi crypto token has rallied over 800% in a month

      July 26, 2022

      Solana said to be ‘more decentralized than people think,’ but there’s more

      July 26, 2022
    • NFT

      NFT potential vast and creative possibility endless, says YellowHeart CEO

      July 27, 2022

      A Complete Guide To Altcoins

      July 27, 2022

      Erick Calderon: NFT Platform Art Blocks’ Rapid Growth ‘Felt Unreasonable’

      July 26, 2022

      NFT Market Projected to Reach $200 Billion in 2030

      July 26, 2022

      The Sandbox Creating a Virtual Home & NFT Art for Alec Monopoly

      July 26, 2022
    • Mining

      The Top 5 Best Cryptocurrencies for Mining in 2022

      July 26, 2022

      Bitmain Partner Antalpha Unveils a Host of Needed Lending Products for Miners

      July 26, 2022

      AntPool Supports Ethereum Classic Ecosystem With $10M Investment

      July 26, 2022

      Texas a Bitcoin ‘hot spot’ even as heat waves affect crypto miners

      July 26, 2022

      Bitcoin mining to harness onsite natural gas emissions: Ark Invest

      July 26, 2022
    • Metaverse

      The Sandbox primary LAND sales volume fell 80% in Q2

      July 26, 2022

      HTC partners with Japan’s pixiv to launch 3D anime avatars in the metaverse

      July 26, 2022

      Wharton School launches metaverse-focused business course

      July 26, 2022

      Aftermath Islands Metaverse Limited Secures $25M Commitment from LDA Capital

      July 26, 2022

      Patents and Big Tech: Which Companies Will Rule the Metaverse?

      July 26, 2022
    • More…
      • Blockchain
      • Analytics
      • Exchange
      • Legal
      • Finance
      • Security
      • Other
    Guide to Crypto and Altcoins
    Home » Institutional Traders Have Mixed Views About Tesla’s Decision to Sell Bitcoin
    Bitcoin

    Institutional Traders Have Mixed Views About Tesla’s Decision to Sell Bitcoin

    🌐  www.coindesk.comJuly 26, 2022No Comments4 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Electric-car maker Tesla sold over $936 million of bitcoin (BTC) in the second quarter amid a broad crypto-market decline and weakening economic conditions, a decision that led to generally positive reactions among the retail crypto community. Institutional crypto traders were less sanguine.

    In an earnings call, CEO Elon Musk said Tesla wanted to maximize its cash position amid the “uncertainty of the COVID lockdowns in China.” Tesla recorded a $64 million gain on the sale.

    Institutional crypto traders had mixed views about the move. Some said it was justified given Tesla’s business interests; others said the decision could influence market participants.

    “The Tesla news is indeed a bearish headline, but not completely unexpected,” Katie Talati, director of research at Arca, told CoinDesk. “According to their filings, Tesla sold their BTC reserves at about $29k over the past quarter as a way to have positive free cash flow. Without this, they would have reported cashflow negative results.”

    Talati said the news was “not a knock on the fundamental thesis for bitcoin” but had more to do with Tesla’s Treasury-management strategy during an overall down market.

    “In the long run, this shouldn’t matter as the success of BTC depends on adoption across many corporates, individuals, and governments, not just one company,” she said.

    Vadym Synegin, vice president at Web3 ecosystem WeWay, took the opposing view. The sales came “against Tesla’s initial plans to hold the premier coin for the long term,” he told CoinDesk. Bitcoin, the largest cryptocurrency by market cap, was used “as a sacrifice” because the company had to bolster its cash position and performance in one of its most difficult quarters.

    “Tesla said it is open to buying more bitcoin in the future, but industry stakeholders may not be pleased with the idea seeing the instability the firm can wield,” Synegin said. “Its influence is huge in the industry.”

    “While every firm has its corporate strategy, the Tesla sell-off might trigger some to reconsider their positions in both the short and long term respectively,” he said.

    Anton Gulin, business director at AAX Exchange, shared that view. While the sales were to do with “pure risk management and a desire to please investors before reporting,” retail investors take such actions seriously, he said.

    “From an ethical point of view, Musk’s actions and statements have already become a meme in their own right and are challenging to take seriously,” Gulin told CoinDesk. “It is just another example and indicator of why you should think with your head and not look for idols.”

    “It is clear that [the] macro and micro factors are complex, and cash on hand is welcome,” he said. “It is also impossible to miss that the market has become more liquid, and this sell-off has not buried it to the ground. The industry has moved on.”

    Musk is not the Market

    Other traders expressed the view that the bitcoin market is much larger even than any influential participant.

    “If Tesla sold its bitcoin in Q2 of 2021, the impact of the news on the crypto market certainly would have been much greater,” Mikkel Morch, executive director at the crypto hedge fund ARK36, said to CoinDesk.

    Tesla’s purchase last year “gave the biggest cryptocurrency a much-needed boost from the narrative perspective. It was interpreted as an endorsement of bitcoin as an institutional-grade investment.” Since then, the situation has changed. “Bitcoin is now a global macro asset and, as such, is driven by forces much greater than Musk,” he said.

    ‘Granted, the price of bitcoin did have a knee-jerk reaction to the news, but a healthy pullback was actually expected after seven straight days of gains,” Morch said.

    Meanwhile, the sale doesn’t end Tesla’s involvement in the crypto market. Musk said in the earnings call that the company was open to “boosting its bitcoin exposure in the future.” And the firm has kept its dogecoin holdings.

    Source: www.coindesk.com
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    bitwiza
    • Website

    Related Posts

    Alternative Media Attacks Bitcoin: A Response To “Bitcoin Cannot Free Palestine”

    July 27, 2022

    Crypto Traders Split on Upcoming Fed Rate Hike’s Impact on Bitcoin

    July 27, 2022

    Bitcoin holds $21k – crypto rally still on

    July 27, 2022

    TA: Bitcoin Price Consolidates, Why Recovery Could Be Capped

    July 27, 2022
    Add A Comment

    Comments are closed.

    Top Posts

    Open Interest In Ethereum Futures Has Hit a Record High

    February 13, 2022

    Number of SHIB holders surges more than 30% in a month

    November 12, 2021

    Estimating This Cycle’s Bitcoin Price Top

    November 12, 2021

    Subscribe to Updates

    Get the latest crypto news from bitwiza.com about altcoins, cryptocurrencies and blockchain.

    Sponsored
    UNITED NEKO ALLIANCE

    We are the leader in cryptocurrency news and a top knowledgebase for crypto assets, DeFi and blockchain.

    We're a community. Connect with us:

    Facebook Twitter Instagram Pinterest YouTube
    Top Insights

    Open Interest In Ethereum Futures Has Hit a Record High

    February 13, 2022

    Number of SHIB holders surges more than 30% in a month

    November 12, 2021

    Estimating This Cycle’s Bitcoin Price Top

    November 12, 2021
    Get Informed

    Subscribe to Updates

    Get the latest creative news from Bitwiza about altcoins, cryptocurrencies and blockchain.

    Facebook Twitter Instagram Pinterest
    • Altcoins
    • Blockchain
    • Bitcoin
    • DeFi
    • Ethereum
    • Crypto Mining
    • NFT
    • Security
    © 2022 Bitwiza. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.