Bitcoin fell 5% on Thursday morning in Asia — after briefly moving above US$24,000 overnight — as Tesla Inc. said it had sold 75% of its Bitcoin holdings. The cryptocurrency was at US$22,767 in midday trading, per CoinMarketCap.
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- In a shareholder letter released Wednesday, Tesla said the Bitcoin sale in Q2 added US$936 million to its balance sheet and was made to increase the company’s cash position amid Covid-related uncertainty.
- Prior to the announcement, the world’s largest cryptocurrency peaked at US$24,196 overnight Thursday — its highest point in over a month — after gaining more than 25% in the past seven days.
- Ethereum fell, trading at US$1,475 midday in Asia after breaching US$1,600 twice in the past two days.
- Ethereum rose about 40% in the past week as its anticipated transition to Eth2, known as “The Merge,” nears.
- Solana also fell back after a recent run up, losing 15% from its high overnight to change hands at US$39.86.
- Despite the declines and the Tesla news, Igneus Terrenus, head of communications at crypto exchange Bybit, told Forkast he expects the bottom of the market has been found as there is a high degree of “selling side fatigue.”
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