The usual sluggishness of Bitcoin
Bitcoin has dropped 3.5 percent in 24 hours, falling to $21,100 at the time of writing. In the meantime, Ethereum has dropped 6.1 percent to $1430 simultaneously. The top ten altcoins have dropped from 3.5 percent (XRP) to 6.8 percent (Solana).
The total crypto market capitalization plummeted 3.7 percent overnight to $971 billion.
On Monday, Bitcoin continued its corrective slide around its 50-day average but began to distance itself from it on Tuesday morning. The cryptocurrency market is buckling under its weight without support from stock indices, with no meaningful growth drivers.
This circumstance heightens the anticipation of a prolonged pause, which is consistent with past tendencies. The history of prior cryptocurrency cycles shows us that buyers may be hesitant to buy even after a bottom is established, as a substantial rally should be expected approximately a year after the last top. Even still, the most spectacular event of FOMO-fueled expansion will have to wait another year. The history of cryptocurrencies is still too short of drawing any conclusions. However, a protracted halt in buzz names following a large sell-off is common in equities, however, without a time frame.
Tesla reveals Bitcoin holdings worth $222 Million
Tesla Inc. submitted its second-quarter earnings report to the Securities and Exchange Commission (SEC) on Monday.
The corporation changed approximately 75% of its bitcoin assets into fiat cash. The BTC conversion brought $936 million to the balance sheet of the electric car manufacturer. Tesla initially purchased $1.5 billion in bitcoin in the first quarter of 2021. During the same quarter, the business sold $272 million in BTC. In the first quarter of 2021, the price of bitcoin ranged between $32K and $59K.
In its Monday SEC, Tesla explained that it purchased $1.5 billion in bitcoin in Q1 2021. Furthermore, throughout the first half of this year, it got “an inconsequential amount” of digital assets.
While Tesla did not specify which other crypto assets it holds, it has been accepting the meme cryptocurrency dogecoin (DOGE) for some items since January.