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Tesla Sold 75% Of Its Bitcoin — Elon Musk Says ‘We Have Not Sold Any Of Our Dogecoin’

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Tesla Sold 75% Of Its Bitcoin — Elon Musk Says ‘We Have Not Sold Any Of Our Dogecoin’

Tesla has converted approximately 75% of its bitcoin into fiat currency. The cryptocurrency sales left the electric car company holding digital assets worth $218 million. “We are certainly open to increasing our bitcoin holdings in the future,” Tesla CEO Elon Musk said, adding: “We have not sold any of our dogecoin.”

Tesla Sold About 75% of Its Bitcoin Holdings

Elon Musk’s electric car company, Tesla, released its Q2 earnings report Wednesday. The company wrote:

As of the end of Q2, we have converted approximately 75% of our bitcoin purchases into fiat currency. Conversions in Q2 added $936M of cash to our balance sheet.

Tesla’s Q2 2022 unaudited balance sheet. Source: Tesla

Tesla’s Q2 balance sheet shows net digital assets of $218 million, down from $1.26 billion in the previous quarter. The company also said its Q2 year-on-year operating income was impacted by bitcoin impairment.

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The electric car company’s statement of cash flows shows proceeds from digital asset sales of $936 million. The only other time Tesla’s cash flow statement showed sales of digital assets was in Q1 2021. The sales proceeds amounted to $272 million at the time.

Tesla’s unaudited statement of cash flows. Source: Tesla

Tesla bought $1.5 billion worth of bitcoin in early 2021 and has not purchased any more since. The electric car company never disclosed the number of BTC it owns. However, Musk hinted in July last year that Tesla owned about 42K bitcoins.

The company also briefly accepted BTC for payments but suspended it in May last year, citing environmental concerns. Last October, Tesla told the SEC that it may restart accepting cryptocurrencies. Musk subsequently said Tesla will resume accepting bitcoin when there is “confirmation of reasonable (about 50%) clean energy usage by miners with positive future trend.” However, at the time of writing, Tesla has not resumed accepting BTC.

Elon Musk: Tesla Has Not Sold Dogecoin and Is ‘Certainly Open to Increasing Our Bitcoin Holdings in Future’

Musk explained why Tesla sold most of its BTC in a call with analysts on Wednesday.

“It should be mentioned that 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 maximize our cash position, given the uncertainty of the Covid lockdowns in China,” the Tesla boss detailed, elaborating:

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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, given Covid shutdowns in China. And we have not sold any of our dogecoin.

Tesla never bought the meme cryptocurrency dogecoin for its balance sheet. However, the company began accepting DOGE for some merchandise in January. Musk previously said that he sees bitcoin as a store of value while dogecoin is more suitable for payments.

In a February filing with the U.S. Securities and Exchange Commission (SEC), Tesla said: “We may increase or decrease our holdings of digital assets at any time based on the needs of the business and on our view of market and environmental conditions … We believe in the long-term potential of digital assets both as an investment and also as a liquid alternative to cash.”

Musk is currently in a legal battle with Twitter Inc. He offered to buy the social media platform for $44 billion but officially terminated the deal on July 8. Twitter subsequently filed a lawsuit against Musk to force him to go through with the deal. The lawsuit trial is set for October.

What do you think about Tesla selling its bitcoin? Let us know in the comments section below.

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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Altcoins

Can DogeCoin [DOGE]’s surge in network activity mean something for its price

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Can DogeCoin [DOGE]’s surge in network activity mean something for its price

In the last two months, the popular meme coin, Dogecoin [DOGE], logged a 256% uptick in the number of unique addresses that traded the Elon-backed coin daily, as per latest data

#Dogecoin price dropped ~15% in the last 2 months, from $0.082 to $0.068. Meanwhile, the # of new daily $DOGE addresses surged by 265%, from 14.47K to 38.43K new addresses per day.

The increasing network growth is a positive sign, which could soon be reflected in #DOGE price. pic.twitter.com/8gwceJVARw

— Ali Martinez (@ali_charts) July 29, 2022

The uptick represented a rally from 14,000 addresses to 38,000 new addresses per day within the two-month period under review. However, the growth in daily active addresses for the DOGE was registered despite a continued decline in price. How has this coin fared in the last two months?

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A small price to pay?

In the two-month window under review, the price of the meme coin dropped by 19%. On 30 May, the price per DOGE coin stood at $0.08. As the bears rummaged through the cryptocurrency market, the price of the coin declined steadily to be pegged at $0.07 at the time of writing. With a bullish retracement underway in the market since the beginning of July, the coin has seen a 16% growth in price in the last 29 days.

The coin’s trading volume dropped in the 60-day period under review. Within that time, DOGE logged an 8% decrease in its trading volume. This stood at 618.43 million at press time, with an 18.54% decline in the last 24 hours. 

Further, at $9.32 billion and currently ranked number ten on CoinMarketCap’s ranking of crypto assets with the largest market capitalization, DOGE’s market capitalization declined by 25%. Two months ago, the meme coin’s market capitalization was $11.65 billion.

Source: Santiment

On a 24-hour chart, the meme coin posted a 0.12% growth in price. Interestingly, the coin has seen an uptick in buying pressure in the last two days. Spotted in an uptrend, the coin’s Relative Strength Index (RSI) was 55.92 at press time. Similarly, headed to the overbought position, the coin’s Money Flow Index (MFI) was pegged at 70.51 at the time of writing.

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Source: TradingView

On-chain performance

Despite the impressive growth in the daily active addresses that transacted DOGE in the two-month period under review, data from Santiment revealed a significant decline in the aggregate amount of DOGE tokens across all the transactions completed within that period. At 255.77 million at press time, this metric dropped by over 200% in the last 60 days. Represented in USD, this declined from $81.1 million to $14.29 million.

Source: Santiment

In the past two months, the coin’s social dominance rose to a high of 12.88% on 16 June. At 3.24% at press time, this metric logged a 74% decline since 16 June. The coin’s social volume also marked a high of 8561 on 19 June. Pegged at 617 at the time of writing, the coin’s social volume dropped by 92%. 

On a developmental front, the coin logged some respite. This grew by 152% in the period under review.

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Source: Santiment

Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.

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Bitcoin

Bitcoin Bulls Try To Recoup As BTC Dislodged From $22,000 Level

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Bitcoin Bulls Try To Recoup As BTC Dislodged From $22,000 Level

It was a good run until it lasted. The crypto market was having a blast last week, until it sharply nosedived by 3.06% to $1.01 trillion on July 25, Monday. Bitcoin together with Solana, Ether, and Polkadot were all knocked over at the start of the week.

Bitcoin was off-course and shaved off the gains it made over the past few days which allowed it to get to its glorious one-month high of $23,000 until it plunged below $22,000 levels on Monday.

As of this writing, Bitcoin is trading at $21,850, down nearly 5 percent in the last 24 hours, data from Coingecko show. 

Suggested Reading | Cardano (ADA) Spikes 8%, Overtakes XRP In Last 24 Hours

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BTC Price Can Retest $25K In Coming Days

Bitcoin has been steady and holding it at the $23,000 level with very minimal drop in prices seen in the past few days especially with the sellers dominating the crypto market.

The crypto was able to successfully breach the ascending pattern and now retests the pattern’s resistance levels. BTC is now eyeing the next key resistance level at $31,300. The price could still hit the $24,000 level in the next couple of days, if not weeks.

BTC recently slid into a downside correction. A break under the key bullish trend was spotted closely at the $22,700 level for the BTC/USD pair. The pair is predicted to suffer a massive drop once it moves below $21,450.

If BTC cannot stay afloat or above $21,800, it may continue to drop. Support is seen to sit close to the $21,500 level. A close that happens below that may send the price way down or near $20,000.

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BTC total market cap at $418 billion on the daily chart | Source: TradingView.com

Bitcoin Downtrend Due To Elon Musk BTC Announcement?

The downward trend of Bitcoin happened last week when Tesla CEO Elon Musk announced that he sold roughly 75% of his total BTC holdings.

Bitcoin was pushing above $24,000 but the bears caught up at the $23,800 zone. The last high was at $23,744 before it retreated. Following a quick rally, Bitcoin sharply dropped to the $22,000 level right after it has outstretched above $23,000 as seen in the past week. In spite of the decline in the selling pressure, BTC was able to maintain its 6% gains from the earlier week.

Well, BTC may potentially rise targeting the $24,000 level anytime soon following the surge in seller power. However, there is also a slim chance that BTC could plunge to the $20,000 zone especially if it dips below its current level.

Suggested Reading | TRON Bulls Are Back To Pump Some Energy Into TRX Coin

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Analysis

Biggest Movers: DOGE Drops Towards $0.05900 Support Level Despite Elon Musk Comments

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Biggest Movers: DOGE Drops Towards $0.05900 Support Level Despite Elon Musk Comments

Dogecoin was down for a third straight session, despite Elon Musk stating earlier this week that Tesla was still holding the token. Polygon was also down, falling by almost 10% to start the weekend, as cryptocurrencies fell back into the red on Saturday. As of writing, the global crypto market cap is trading 4.81% lower.

Polygon (MATIC)

Polygon (MATIC) dropped by almost 10% to start the weekend, as bearish pressure intensified in crypto markets.

Saturday saw the token slip to an intraday low of $0.8236, just days after nearing a breakout above the $1.00 mark.

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Today’s drop comes as bears now look to be targeting a floor of $0.7250, which was hit last Sunday.

MATIC/USD – Daily Chart

Recent declines in MATIC/USD have come following the relative strength index (RSI) hovering deep in overbought territory.

The index hit a resistance point of 79.39 earlier in the week, which was the highest reading for the indicator since October 2021.

In addition to this, after crossing in late June, the 10-day (red) and 25-day (blue) moving averages seemed to have matured to a peak, which could signal further downside moves in upcoming sessions.

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Dogecoin (DOGE)

Dogecoin (DOGE) was in the news this week, as Tesla CEO Elon Musk confirmed that the company still had its holdings in the meme coin.

However, since then, prices of the token have fallen in consecutive sessions, with today’s drop pushing DOGE/USD to a low of $0.06639.

Overall, the token is still up 7.34% from the same period last week, which came following a surge to a weekly high of $0.0775 on Thursday.

DOGE/USD – Daily Chart

Similar to MATIC, price declines in DOGE started once a ceiling of 57 was reached in the RSI indicator, opening the door for returning bears in the process.

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Should momentum continue to trend downwards, we could see the meme coin falling back to its long-term support point of $0.05900.

There is some hope for bulls, however, in the form of the 10-day moving average (red), which looks set to cross the 25-day trendline, which could help resurrect price strength.

Register your email here to get weekly price analysis updates sent to your inbox:

Could we see dogecoin fall to a floor of $0.05900 in upcoming sessions? Let us know your thoughts in the comments.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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