Bitcoin has been undergoing a depressive price state for some time, is now valued at a position of $54K. This might seem like a far distance from its ATH of $64,500 in the same month. However, it is much better than a down level of $48K. Various crypto tabloids and analytics boards have noticed that Bitcoin is experiencing many folds slower trading volumes in the last few months.
This behavior could be attributed to the increasing price of the flagship cryptocurrency and the increasing number of altcoin contenders available at the disposal of crypto enthusiasts. During a bear correction, both institutional and retail investors rush into the markets to increase their investments. On the other hand, whale activities also tend to affect the decision of the Bitcoin price evaluation. Tesla Inc. that is considered one of the biggest Bitcoin holders has cashed out 10% of its Bitcoin holdings in Q1.
In February of the same year, Tesla Inc. made an astonishing announcement of adding Bitcoin to its holdings. This investment put the corporation in the whale class since it was valued at $1.5 billion worth of Bitcoin holdings. The effect of this purchase also introduced Bitcoin to many people and increased the rush of institutional investors in crypto markets.
The CEO of the car manufacturing company, Elon Musk, has also invested in cryptocurrency personally. After a major price correction, the current selling of Bitcoin has generated mixed feelings among the crypto community. Dave Portnoy, the owner of DDTG Global, explains that Elon Musk has been pumping and dumping the market. At the same time, others believe that this is a smart move to even out the Tether liquidity.
Musk’s Response to Criticism
Musk has responded to the crypto market critiques with a quick response on Twitter. He told the crypto community that he has not sold out any of his personal Bitcoin holdings thus far in a recent tweet. However, it is not clear that how much Bitcoin the Tesla CEO is personally stacked in. It cannot be denied that he has been a central figure in introducing Bitcoin on an international platform and has been making several supporting references for crypto.
Tesla Inc. also started to accept Bitcoin as payment, and after this transition, many others follow suit. Musk’s wife Grimes has sold an NFT music album for $6million. This is among the highest valued NFT sales to date. It seems that Musk is also going to release an NFT media artwork soon, which is expected to be announced soon.