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Is this the beginning of the end for bitcoin?

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Concerns investors will lose faith in the crypto following Tesla’s sell-off

Tesla’s bitcoin sell-off has analysts concerned, after the company dumped $936 million worth of crypto, or 75% of its total holdings.

Following the news – the crypto’s price dropped and gains seen just last week were brought back down to earth.

So now the world’s biggest EV manufacturer has dropped the majority of its Bitcoin stake, should we all be doing the same?

On an earnings call, Musk said his company dumped its holdings due to the uncertainty around China’s Covid lockdowns.

He noted it’s important for Tesla to maximise its cashposition during this difficult economic period.

“The reason we sold a bunch of our bitcoin holdings was that we were uncertain as to when the Covid lockdowns in China would alleviate. So it was important for us to maximise our cash position.”

ELON MUSK

But does this really stack up? Or is it just an excuse following a nice rally?

Up until Wednesday, the last week had been good for Bitcoin, gaining 12 per cent in just seven days.

While other cryptos including ethereum and solana surged even more dramatically.

Musk says his company is still open to increasing bitcoin holdings in future.

But some analysts predict other big investors will use Tesla’s bitcoin sale as a justification to offload their own digital coins and send the price even lower.

“We are certainly open to increasing our bitcoin holdings in future, so this should not be taken as some verdict on bitcoin. It’s just that we were concerned about overall liquidity for the company.”

elon musk

They say like or not Musk can move markets and this is something to be conscious of.

But while the Tesla sell-off caught many off guard, analysts also stress this isn’t game over for Bitcoin and ebbs and flows are all just part of the market.

“The Tesla sell-off can trigger a new wave of related dumping from corporate bitcoin holders, most of which might also be distressed by the ongoing global economic downturn.”

ANDREY DIYAKONOV FROM CHOISE.COM SPEAKING TO CNN

William is an Executive News Producer at TICKER NEWS, responsible for the production and direction of news bulletins. William is also the presenter of the hourly Weather + Climate segment. With qualifications in Journalism and Law (LLB), William previously worked at the Australian Broadcasting Corporation (ABC) before moving to TICKER NEWS. He was also an intern at the Seven Network's 'Sunrise'. A creative-minded individual, William has a passion for broadcast journalism and reporting on global politics and international affairs.

Business

Binance pours in another billion to help crypto

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Crypto exchange Binance has allocated another $1 billion for its industry recovery fund, effectively doubling the size of the fund within just one week.

The additional allocation was announced by Binance’s CEO.

Binance won’t be on its own. Aptos Labs and Jump Crypto, along with other prominent crypto companies joined Binance’s initiative and will contribute $50 million to the fund.

The crypto market has seen a massive decline since the start of the year, leading to several crypto firms going out of business.

The recovery fund will be used to buy distressed crypto assets and support the industry.

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Business

Billion dollar fund to save crypto

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Cryptocurrency exchange Binance is trying to shore up trust in the industry, revealing new details about its industry recovery fund.

It aims to prop up struggling players in the wake of FTX’s calamitous bankruptcy.

Binance plans to devote $1 billion in initial commitments to the recovery fund and may even double that if the need arises.

Binance CEO Chang-peng Zhao shared the public wallet address with its initial commitment to prove the company is acting transparently.

The fund is an attempt by Binance to keep the crypto industry afloat after controversial entrepreneur Sam Bankman-Fried’s exchange FTX filed for bankruptcy earlier this month.

Musk’s distance

Twitter CEO Elon Musk is distancing his new company from FTX’s disgraced founder Sam Bankman-Fried and his alleged ownership of Twitter shares.

In a series of tweets, Musk called out a “news report that alleged Bankman-Fried rolled his $100 million holdings of Twitter into private shares.

Musk discredited the report which alleged Bankman-Fried “owns a sizable chunk of a now privately held and debt-laden Twitter.”

The report claimed an FTX balance sheet prepared after the takeover closed at the end of October and circulated to investors earlier this month.

In a tweet Musk says “SBF/FTX do not own shares in Twitter.”

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Business

Should crypto be banned for NYC retirement savings?

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New York’s Attorney General wants lawmakers to ban the use of crypto assets as an investment option for retirement accounts.

In the letter addressed to members of Congress, the attorney general claimed that US lawmakers need to protect workers’ retirement funds from high-risk crypto assets.

It follows the recent collapse of FTX which delivered billions in losses to retail users.

She added that while investment in crypto assets has found momentum over the past few years, these assets “have no intrinsic value on which their prices are based.”

James also urged Congress to reject a recent law that would prevent the Secretary of Labor from banning digital asset investments.

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