After briefly crossing the US$24,000 mark overnight, Bitcoin dipped 5% on Thursday morning in Asia after Tesla Inc. announced it has sold 75% of its Bitcoin holdings. According to CoinMarketCap, the cryptocurrency’s value at lunchtime trading was $22,767 USD.
Fast Facts
In a shareholder letter distributed on Wednesday, Tesla stated that the Bitcoin transaction in Q2 increased the company’s cash position in light of the uncertainties surrounding Covid and contributed US$936 million to its balance sheet.
The largest cryptocurrency in the world reached its highest point in over a month prior to the news, peaking at US$24,196 overnight on Thursday after increasing by more than 25% over the previous seven days.
After hitting US$1,600 twice in the previous two days, the price of ethereum dropped, trading around US$1,475 at midday in Asia.
As “The Merge,” or Ethereum’s anticipated transfer to Eth2, approaches, its price increased by nearly 40% over the previous week.
After a recent run-up, Solana also lost ground, dropping 15% from its overnight high to trade at US$39.86.
Igneus Terrenus, the head of communications at cryptocurrency exchange Bybit, told Forkast that despite the falls and the Tesla news, he believes the market has reached its bottom since there is a lot of “selling side tiredness.”
