The day of July 20 occurred under the sign of the “eeasy to come, easy to go (as soon as you come, as soon as you leave). The day started on a high note with bitcoin (BTC) rising above $24,300, only to end in the red after grim second quarter earnings news showed that Tesla sold 75% of its bitcoins and that Minecraft creator Mojang Studios reverse bitcoins. decision to ban NFTs on its platform.
The likely source of the afternoon delay can be traced to Tesla’s second quarter earnings data, which revealed that the electric car company sold 75% of its bitcoin holdings to put $963 million dollars in cash on its balance sheet.
In addition, Tesla sold 75% of theirs #Bitcoin cash purchases.
That was the cause of the accident.
That is also why we are near the bottom.
— Michael van de Poppe (@CryptoMichNL) July 20, 2022
Therefore, not only the forced selling of 3AC, $LUNA and $UST, but also Voyager, BlockFi and Celsius brought the markets down. Additionally, Tesla sold 75% of its #Bitcoin purchases for cash. This is what caused the accident. This is also why we are near the bottom. — Michael van de Poppe (@CryptoMichNL) July 20, 2022.
Shortly after Tesla’s announcement, the price of bitcoin retreated from its daily high of $24,280 to $22,900, before stabilizing around $23,500.
Also read: Bitcoin price hits $24,000, but analysts say on-chain data points to ‘inevitable’ pullback
Perhaps Traders’ Bullish Estimates Were Premature
Today’s unexpected pullback may also have helped give some market perspective to cryptocurrency traders who were ready to end the bear market.
Many of you have not gone through the early months of a bear market and it shows.
You get excited about dead cat bounces and bull traps, act as if a quick pump is the end of the bear cycle.
Unfortunately, there is only one way to learn.
— Vlad “BTCTKVR.com” Costea ⚡️ (@TheVladCostea) July 19, 2022
Many of you have never experienced the first few months of a bear market and it shows. You get excited with cat trap type bounces and dead bulls and act as if a quick pump ends the downward cycle. Unfortunately, there is only one way to learn. — Vlad “BTCTKVR.com” Costea ⚡️ (@TheVladCostea) July 19, 2022.
While the withdrawal of bitcoins has been relatively mild so far, some altcoins have seen larger declines as recent price increases have created a nice opportunity for traders to make gains.
Polygon, Ethereum’s layer solution, saw an 11.5% drop after a week in which the token’s value increased by 87%. Arweave (AR) saw its token price drop by 10.84% while Filecoin (FIL) fell by 10.2%.
In contrast, Steem (STEEM) and Reef (REEF) were the only tokens in the top 100 to maintain positive gains, seeing modest gains of 6.27% and 3.15%, respectively.
The overall market capitalization of cryptocurrencies now stands at $1.035 trillion, and bitcoin’s dominance rate is 42.7%.
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