[Bitcoin Now] Slight Weakness Following Tesla's Stop-Loss... Holding at $23,000 Level

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Myunghwan] Bitcoin prices are slightly weak following Tesla's disposal news.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:12 AM on the 21st, Bitcoin was priced at $23,275 (approximately 30.59 million KRW), down 0.09% from the previous day.

Bitcoin is estimated to be showing weakness due to news that Tesla disposed of 75% of its Bitcoin holdings in the second quarter of this year. Tesla announced in its quarterly report released on the 20th (local time) that it reduced its digital asset holdings to $218 million (approximately 280 billion KRW) and increased cash to $936 million (approximately 1.23 trillion KRW).

Previously, Tesla purchased $1.5 billion (approximately 1.97 trillion KRW) worth of Bitcoin in February last year. At that time, Elon Musk, Tesla's CEO, stated that Tesla would not sell its Bitcoin holdings, but as cryptocurrency prices plummeted in the second quarter and volatility increased, it appears Tesla reduced its risky asset Bitcoin and increased its dollar holdings.

Regarding this, CEO Musk explained during a conference call that Bitcoin was sold to secure cash liquidity due to uncertainty about how long China's COVID-19 lockdown would continue.

Experts predict that cryptocurrency prices will show unpredictable movements. Alexander Lawres, a researcher at cryptocurrency investment consulting firm Quantum Economics, said, "There is divided opinion among investors on whether the Bitcoin rally is just a bull trap or if it has truly entered a bull market," emphasizing, "No one, including myself, can know the price movements."

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 62.27 on the day, indicating a 'Greed' stage. This is a decrease of 1.53 from the previous day's 63.79 (Greed). Dunamu's Digital Asset Fear & Greed Index is divided into stages: 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. The greed direction means increased interest in buying among market participants, whereas moving toward fear indicates a fear of asset decline, leading to market exits and a chain reaction of price drops.

This content was produced with the assistance of AI translation services.