Thursday, September 29, 2022

Justin Sun Says Tesla Selling Huge Amount of its Bitcoin is Great News for Holders

Popular opinion about the decision of electric carmaker Tesla to sell off 75% of its entire Bitcoin (BTC) holdings in the second quarter (Q2) of 2022, is that it’ll have a negative impact on the price of BTC. However, Tron founder, Justin Sun seems to have a different opinion. According to Sun, who took to Twitter to explain three points, the news is actually a great one for the Bitcoin ecosystem.

First and foremost, Sun believes that the news of Tesla selling BTC can no longer haunt the market as it has now come and gone. Also, he points to the fact that selling such huge amount of BTC is an indicator of the coin’s liquidity to all big corporations. And lastly, he wrote:

“Tesla completing @Bitcoin  transactions shows a good precedence for all enterprises holding #BTC.  We believe more big corps will buy in the future.  Kudos to @elonmusk !”

Bitcoin (BTC) Price Responds To Tesla News

Just as expected, BTC price has responded swiftly to the news of Tesla selling their BTC. Earlier on Wednesday, the BTC price shot up to surpass the $24,000 mark. However, since the news, BTC price appears to be under pressure, correcting below $23,000. This means it currently trades close to its 200-week moving average (MA), which is $22,800.

Meanwhile, it should be noted that the 200-week MA has been serving as Bitcoin resistance for weeks now. And maintaining it for the weekly close would be very vital for BTC.

Elon Musks Speaks

Meanwhile, Tesla CEO Elon Musk has also shared the reason behind the sell-off. He claims that the company needed to maximize its cash position especially because of the shutdown of its Shanghai factory in April.

More importantly, Musk says that the selling of Bitcoin does not mean that the company has given a “verdict” regarding Bitcoin. And he also adds that sometime in the future, Tesla would consider increasing its BTC holdings once again. For what it’s worth though, Tesla still has a 100% of its Dogecoins holdings despite the current uncertainties in the global macro environment.

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