Bitcoin Flagged $1.5K as Tesla Panics and Sells $1B BTC

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Bitcoin retraced by $1,500 as Musk’s Tesla sold $936M worth of BTC. The altcoins are also in the red.

Bitcoin’s price tumbled more than $1,500 on Wednesday after news broke that Tesla had sold the majority of its Bitcoin holdings in the second quarter. Tesla’s Bitcoin sales coincided with a sharp drop in the price of the cryptocurrency, leading some to speculate that the electric car maker may have been responsible for the sell-off. The altcoins also retraced hard, with some heavy losses from the likes of Cardano, Solana, Dogecoin, and others.

Bitcoin Slips Below $23K

The past week or so went quite well for the primary cryptocurrency, which had dipped below $19,000 on July 13 following the latest US CPI numbers. The bulls came to play at that point and didn’t allow any further declines.

Just the opposite, BTC started to gain value fast and reclaimed $20,000 before the weekend. Saturday and Sunday saw more impressive performances from the asset, which jumped beyond $22,000.

The landscape got even better after the start of the working week. This culminated in a price surge to over $24,000, which became the new highest price point in over a month.

However, news broke that Elon Musk’s Tesla had sold almost $1 billion of its BTC holdings during Q2. This had an immediate effect on bitcoin’s price, which dropped by approximately $1,500 and currently struggles below $23,000.

Its market capitalization has dropped to just under $450 billion, but the dominance over the altcoins has regained some traction and sits at 42.6%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Alts in Red

Similar to bitcoin, most altcoins registered impressive gains in the past few days but have retraced on a daily scale.

Ethereum was among the most impressive performers. It skyrocketed from $1,000 to over $1,600 in about a week, charting a new 40-day high. Now, though, ETH has lost around 4% and trades just under $1,500.

BNB and XRP are down by similar percentages to $255 and $0.35, respectively. More losses, though, come from Cardano, Solana, Polkadot, MATIC, and Avalanche. All of them have declined by up to 8%.

The two largest memecoins – Shiba Inu and Dogecoin – have dropped by double-digit percentages.

With most lower- and mid-cap altcoins also sitting in the red, the cumulative market cap of all crypto assets has declined by $60 billion in a day. Nevertheless, the metric still stands well above $1 trillion.

Cryptocurrency Market Overview. Source: Quantify Crypto

Cryptocurrency Market Overview. Source: Quantify Crypto

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