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Wednesday, August 10, 2022

Bitcoin Falls, Ethereum (ETH) Rises As Traders Digest Tesla BTC Sale

Bitcoin, Ethereum and other major coins traded mixed Thursday evening as the global cryptocurrency market rose 1.15% to $1.05 trillion at press time.​​





Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD -0.7% 12.7% $23,139.08
Ethereum ETH/USD 3.1% 32.46% $1,575.26
Dogecoin DOGE/USD -0.4% 12.1% $0.07





Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
Curve DAO Token (CRV) +21.2% $1.40
Synthetix (SNX) +15% $3.29
Cosmos (ATOM) +14.1% ​​$11.06

See Also: How To Get Free Crypto

Why It Matters: The divergence between Bitcoin and Ethereum was in play on Thursday. The top cryptocurrency by market cap continues to be under pressure after news of Tesla Inc’s TSLA sale was disclosed on Wednesday.

“Tesla dumping a good portion of their Bitcoin holding news caught many off guard and helped end the rally above the $24,000. This is not a game changer for Bitcoin, but it unsettled a good portion of the avid social media followers,” said OANDA Senior Market Analyst Edward Moya, in a note seen by Benzinga.

Moya expects Bitcoin to be “choppy” until the period beyond the next U.S. Federal Reserve policy meeting next week.

GlobalBlock analyst Marcus Sotiriou said Tesla CEO Elon Musk’s decision to sell the automaker’s Bitcoin holdings will not “sit well with Bitcoin maximalists, as it gives the impression to many institutions that Bitcoin is not a suitable reserve asset or safe haven.”

Sotiriou noted that Bitcoin fell 40% after Tesla sold some of its holdings. “I don’t think Tesla should be criticized for managing their risk in this uncertain macro-economic environment. They may well buy back Bitcoin or other digital assets when conditions improve.”

CryptoQuant CEO Ki Young Ju pointed to a tweet dated June 16 when market makers at Coinbase sent 63,638 BTC to multiple exchanges, mostly Binance and Bitfinex over 72 hours.

Current market conditions present investors with “enough volatility to make money,” said cryptocurrency trader Michaël van de Poppe on Twitter. He said the summer relief rally is continuing. 

Social volume is not soaring, indicating investors are not having “FOMO fever” just yet, said Santiment, a market intelligence platform on Twitter. 

Meanwhile, cryptocurrencies continue to be strongly correlated to stocks. On Thursday, the S&P 500 closed 1% higher, while the tech-heavy Nasdaq ended the day 1.4% higher.  

Markets slipped into the red in extended trading after Snapchat parent Snap Inc SNAP revealed weak earnings. S&P 500 and Nasdaq futures traded 0.4% and 0.7% lower, respectively, at press time.

Read Next: Did Tesla Make Money On Its $1.5B Bitcoin Purchase

Photo by Studio13lights on Shutterstock

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