We had an announcement earlier on that Tesla has sold 10% of their holdings on Bitcoin. Tesla sold a portion of the Bitcoin they acquired back in February; they purchased about 1.5 billion dollars worth of Bitcoin. After making a profit from that, they sold a portion of their Bitcoin with a gain of over $100 million.
Although people are panicking about this, the crypto space is still up. Bitcoin is still over 55,000 dollars with this news, and Elon Musk also mentioned something very bullish on Twitter.
Many people have been accusing Elon Musk of having paper hands and dumping his Bitcoin and not holding it long term. The truth is that this is not a big deal, but it Is a good thing if you think deeply about it.
We also have to remember that Tesla announced that they would be accepting Bitcoin as payments for its cars without converting it to fiat currency. They stated that they would be holding the Bitcoin paid to them for Tesla cars. These actions illustrate the massive confidence that Tesla has in Bitcoin; they would not be holding it in Bitcoin if they did not think the value would be going up. If they saw the value going down in the short term, they would instantly convert that to fiat currency.
Earlier today, Elon Musk posted something important on his Twitter in his response to Dave Portnoy’s tweet, which looks very bullish for Bitcoin. Eon Musk stated that he still has his Bitcoin and still holding it, that it was only Tesla that sold 10% of its holdings to prove the liquidity of Bitcoin as an alternative to holding cash on the balance sheet.
We can notice that this is probably the first time Elon Musk is saying that he has Bitcoin in his holdings. Previously, he confirmed that he owned some Bitcoin that was gifted to him, but looking at this, it seems like he is buying Bitcoin, personally owns it, and is holding it for the long term.
Some time ago, he also stated that Bitcoin is far better than Fiat currency, so I do not see why he would not personally own Bitcoin. He has never publicly talked about how much he owns, or his thought is whatever altcoins he is holding.
Tesla sold 10% of its holding to prove a point. This is very important and is good for the Tesla stock. They will be accepting Bitcoin as payment for Tesla cars, so if they were bearish on Bitcoin, they would be cashing out more than 10%, probably 50% or more.
Bitcoin is still over $50,000, but it dropped down to $47,000 and quickly bounced back to $49,000 yesterday, then it continued to surge and went up to about $54,000. We have to remember that this is not only Elon Musk but a massive company with many people involved in it. It is not only Elon Musk’s opinion that many people at Tesla also believe in Bitcoin.
