The electric car maker became a proxy for investors looking to take a position in the cryptocurr...
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The electric car maker became a proxy for investors looking to take a position in the cryptocurrency without buying it directly, but its recent jettisoning of $936 million of BTC suggests the company wasn’t all that committed to the asset.
Bitcoin fell slightly in Thursday trading as investors continued to absorb the aftershocks of Tesla's (TSLA) decision to shed $936 million in bitcoin from its balance sheet during its second quarter.
The largest cryptocurrency by market capitalization was recently trading at about $23,100, down more than a half percentage point over the past 24 hours.The second, consecutive daily decline following an early week rally underscored Tesla CEO Elon Musk's influence among digital asset investors.
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Musk's utterances about bitcoin and dogecoin (DOGE) have sent markets for those assets intermittently soaring and plunging for much of the past two years."Bitcoin was showing signs of a potentially meaningful breakout, but that quickly came to an end after Tesla reported earnings," Oanda Americas Senior Analyst Edward Moya wrote in an email.
Yet Moya noted that traders should not have been surprised by Musk's support of the sale, given the crypto winter and comments he make a month ago at the Qatar Economic Forum that he had not recommended people invest in crypto.
Moya added optimistically: "This is not a game changer for bitcoin." Ether, the second-largest crypto by market cap, was changing hands just below $1,600, up more than 3% over the same period.
Other major altcoins were in the green of a mostly dark shade, with Cosmos' ATOM and Polygon's MATIC climbing more than 13% and 8%, respectively, at one point.
Equity markets also rose on Thursday, albeit less robustly than cryptos. The tech-heavy Nasdaq jumped 1.3% while the S&P 500 increased almost a percentage point, respectively.Stocks have found even ground lately amid better-than-expected earnings reports from a number of major brands, most recently Tesla and Netflix.
Investors have also been encouraged by reports that the U.S. central bank's Federal Open Market Committee (FOMC) would raise the interest rate 75 basis points instead of opting for a more robust 100-point hike.The mildly, less hawkish turn has suggested to some observers that inflation may soon stall without the economy plunging into recession.
A Thursday report showing jobless claims in the U.S. reaching an eight-month high offered the latest evidence of a more desirable, gradual economic weakening.
Still, rising prices remain a concern in the U.S. and beyond as the European Central Bank raised borrowing costs for the first time in 11 years.
Meanwhile, the crypto industry continued to suffer the fallout from the ongoing bear market with cryptocurrency exchange Blockchain.com cutting 25% of its workforce – about 150 people.
Blockchain.com follows recent layoffs at a number of other large crypto exchanges worldwide, including Coinbase, Bullish, Bitso and Buenbit.
Other news was more upbeat with banking giant JPMorgan saying in a report that demand among retail investors in the crypto market was improving, and that the "intense phase" of deleveraging appeared to be over.
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And decentralized finance (DeFi) trading platform Hashflow closed a $25 million Series A funding round at a valuation of $400 million.
Moya expects trading to remain volatile until the Fed meets. "Bitcoin could be in for a choppy period until we get beyond next week’s decision," Moya wrote. - coindesk
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