Elon Musk’s Tesla Moves $760 Million in Bitcoin, Raising Fears of a Massive Liquidation
The cryptocurrency community is abuzz with rumors following Tesla’s transfer of a sizable portion of its Bitcoin (BTC) holdings. More than 11,500 BTC were transferred from wallets linked to the electric car giant to unknown addresses, raising concerns about a potential liquidation.
However, despite these transactions, there are no clear indications that Tesla intends to liquidate its assets. According to Arkham, the target wallets are newly created and not tied to any cryptocurrency exchange, suggesting that these moves could be strategic in nature.
Did Tesla Sell Bitcoin on the OTC Market?
The BTC involved, valued at around $760 million, nearly emptied Tesla’s cryptocurrency reserves, leaving only about $8 in its original wallets. This activity follows two years of minimal movement.
Historically, Tesla’s engagement with Bitcoin has experienced several ups and downs. Initially, after purchasing $1.5 billion in Bitcoin in 2020, the electric car company sold approximately 10% of it in early 2021.
By July 2022, Tesla had moved about 75% of its remaining BTC holdings as market values fell from their peak in November 2021.
Currently, Tesla remains the fourth-largest Bitcoin holder among publicly traded U.S. companies. Only MicroStrategy and mining companies Marathon Digital Holdings and Riot Platforms hold more.
Tesla’s Recent Moves: Preparing for an OTC Transaction?
The nature of Tesla’s recent Bitcoin transactions suggests they may be preparing for an over-the-counter (OTC) sale. However, others argue that this development is not entirely bearish.
“There is no evidence yet that this is an OTC trade. Even if it was, that means someone else bought it, so it’s not all bearish. Who knows,” says Sir Doge of the Coin.
Tesla’s Ongoing Involvement with Bitcoin
Tesla’s involvement with Bitcoin goes beyond buying and selling. In 2021, it briefly accepted Bitcoin as payment for its vehicles.
However, Tesla reversed this decision two months later, citing concerns over the environmental impact of Bitcoin mining. CEO Elon Musk has indicated that Tesla could return to accepting Bitcoin if mining becomes more environmentally friendly.
Bitcoin Price Holds Steady Despite Market Concerns
Despite initial market concerns, Bitcoin’s price remains steady, currently hovering around $67,000. This stability is supported by significant inflows into spot Bitcoin ETFs.
On the day Tesla moved its BTC, spot Bitcoin ETFs saw inflows totaling $371 million. BlackRock’s iShares Bitcoin Trust fund alone raised $288.84 million, indicating strong investor interest.