Elon Musk’s company, Tesla, bought $1.5 billion worth of Bitcoin in February this year. The data shows that Tesla sold some bitcoins in the first quarter with a gain of $272 million. The earnings report confirmed that Tesla still holds approximately $1.33 billion in Bitcoin.
Tesla’s chief financial officer Zach Kirkhorn said on the earnings call that the sale will reduce Tesla’s position by 10%. At the same time, Zach Kirkhorn also stated that the company will continue to invest in Bitcoin and Tesla believes in the “long-term value” of Bitcoin.
It is worth mentioning that recently Tesla CEO Elon Musk also said that I did not sell any bitcoins I held. Tesla sold bitcoin to prove that liquidity is a substitute for cash. There are many reasons to be optimistic about Bitcoin.
William, the chief researcher of OKEx Research Institute, said that the fundamental reason for this round of Bitcoin bull market is that the loose monetary policies of major central banks in the world since 2020 have brought high inflation expectations to the market, and the total amount of Bitcoin is fixed and partially Institutional investors and large companies regard it as “digital gold” and believe that investing in Bitcoin can hedge against inflation. Therefore, many listed companies and institutional investors have begun to buy and hoard Bitcoin, which promotes the rise of Bitcoin prices.
Eric Weinstein, managing director of Thiel Capital, also said that it is wise to focus on the ability of cryptocurrencies to hedge against the devaluation of legal currencies.
In fact, not only Tesla, Meitu has also accumulated a net purchase of about 100 million US dollars worth of cryptocurrency, and Bitcoin-related investments have also recorded a floating profit of nearly 19 million US dollars.
However, since Bitcoin hit an all-time high of nearly $65,000 in mid-April, it has fallen by nearly 25%. Data from CoinShares shows that as the strong rise of digital assets hits the top, Bitcoin has released a record weekly outflow of funds, and the overall sentiment towards cryptocurrencies has turned cautious.
But the second largest cryptocurrency, Ethereum, has seen a strong inflow of $34 million. So far this year, the inflow of funds is 792 million US dollars, accounting for 8% of the total asset management scale, reflecting the new positive sentiment of investors. According to data from crypto analysis company Santiment, last weekend, the number of Ethereum whale wallets holding more than 10,000 ETH surged to 1,311, a record high.
In addition, on April 27th, IntoTheBlock tweeted that IOMAP data showed that the current transaction price of ETH was higher than the stable support level. More than 200,000 addresses purchased nearly 10 million ETH at an average price of $2,270.
At the same time, despite the recent market shocks, user demand remains unchanged. PayPal CEO Dan Schulman revealed that user demand for cryptocurrencies on the platform is much higher than expected. Schulman said: “The demand for cryptocurrencies has reached several times what we initially expected. This is exciting.” In addition, Bitcoin’s Korean kimchi premium has now rebounded after falling to zero last week. Currently, South Korea’s Bitcoin The price is 6% higher than other parts of the world.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.