Cryptocurrency Analysis

[IFX_Selena]

Did Tesla crash Bitcoin?



The Bitcoin community continues to closely monitor the activities of Tesla and Elon Musk personally. Just recently, it became known that Tesla, which previously invested $1.5 billion in bitcoin, sold about 10% of its coins for a total of $272 million. This is stated in the report for the first quarter of 2021. And here, a very important point immediately arises: no one knows when exactly Tesla sold its bitcoin coins. After all, we can assume that they sold them at the maximum values or so, and it was after this transaction that the bitcoin began to fall. However, as we have already said, no one knows when this transaction was carried out. Although, it is a little alarming. About the same as the sale of almost all shares by top managers of the crypto exchange CoinBase, which recently entered the NASDAQ, is alarming.

Meanwhile, bitcoin began to fall again on Wednesday. Unfortunately, on the hourly time frame, the bitcoin quotes have overcome the downward trend line that we had hoped for. Thus, the Kijun-sen line on the 24-hour time frame and the 50.0% Fibonacci level remain important resistances. It is these resistances that determine whether the upward trend in digital gold will resume or whether the correction will resume. We are leaning towards the second option.

At the same time, PayPal CEO Dan Shulman said that the demand for cryptocurrencies exceeded the company's expectations several times. According to Shulman, in the next 5-10 years, the global financial system is waiting for big changes. He said that in 10 years, fiat money will move away, and few people will use it. Most people will use non-cash payment methods.

But many experts of the cryptocurrency community question the information that Tesla sold bitcoins, just "to check the liquidity of the token." According to many independent and disinterested experts, the only reason for selling BTC coins was the desire to make money on the exchange rate difference. According to various sources, Tesla bought bitcoin for $40,000-$43,000 per coin. Thus, wherever they sold them, they still made a huge profit. There are desperate disputes on the Internet now because of Tesla's act, as well as because of the words of Elon Musk himself that "he did not sell his personal bitcoin coins." It turns out that he also has personal digital assets, although he previously stated that he does not own bitcoin coins. In general, Elon Musk in the coming weeks may again become the number one figure for the cryptocurrency world, and his tweets in social networks may be more important than the results of the Fed meeting.





Paolo Greco
Analytical expert
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