Bitcoin Falls, Ethereum (ETH) Rises As Traders Digest Tesla BTC Sale
Bitcoin, Ethereum and other major coins traded mixed Thursday evening as the global cryptocurrency market rose 1.15% to $1.05 trillion at press time.
| Coin | 24 hours a day | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | -0.7% | 12.7% | $23,139.08 |
| Ethereum ETH/USD | 3.1% | 32.46% | $1,575.26 |
| Dogecoin DOGE/USD | -0.4% | 12.1% | $0.07 |
| Cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| The Curve DAO token (CRV) | +21.2% | $1.40 |
| Synthetics (SNX) | +15% | $3.29 |
| Cosmos (ATOM) | +14.1% | $11.06 |
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Why it matters: The difference between Bitcoin and Ethereum was in play on Thursday. The top cryptocurrency by market capitalization continues to be under pressure after news of Tesla Inc TSLA The sale was announced on Wednesday.
“Tesla’s dumping of a good portion of their Bitcoin hold news caught many off guard and helped end the rally above $24,000. This is not a game changer for Bitcoin, but it did unsettle a good number of the avid social media followers ,” so OANDA Senior Market Analyst Edward Moyain a note seen by Benzinga.
Moya expects Bitcoin to be “choppy” for the period beyond the next US Federal Reserve policy meeting next week.
GlobalBlock analyst Marcus Sotiriou said Tesla’s CEO Elon Musk’s The decision to sell the automaker’s Bitcoin holdings will not “sit well with Bitcoin maximalists, as it gives the impression to many institutions that Bitcoin is not an appropriate reserve asset or safe haven.”
Sotiriou noted that Bitcoin fell 40% after Tesla sold some of its holdings. “I don’t think Tesla should be criticized for managing their risk in this uncertain macroeconomic environment. They may well buy back Bitcoin or other digital assets when conditions improve.”
CryptoQuant CEO Ki Young Ju pointed to a tweet dated June 16 when market makers at Coinbase sent 63,638 BTC to multiple exchanges, mostly Binance and Bitfinex over 72 hours.
Correction: MM(e) executed Tesla’s order. https://t.co/R0TnT3mmpm
— Ki Young Ju (@ki_young_ju) 20 July 2022
Ki said it executed orders on behalf of Tesla on Thursday.
Current market conditions give investors “enough volatility to make money,” the cryptocurrency trader said Michael van de Poppe on Twitter. He said the summer help meeting continues.
$ETH attack heights, #Bitcoin strike a decent daily candle.
The summer help continues.
Enough volatility to make money.
And you see how quickly feelings change.
— Michaël van de Poppe (@CryptoMichNL) 21 July 2022
Social volume isn’t picking up, indicating investors don’t have “FOMO fever” yet, said Santiment, a market intelligence platform on Twitter.
#Bitcoin is +12% and has jumped back over $23k this week. The bigger story has been #Ethereum (+33%) & #altcoins as $ETC (+69%), $APE (+39%), $FTM (+33%), & $RUNES (+31%). As long as the social volume stays down, the crowd doesn’t #FOMO fever still. https://t.co/nf1qN1XuQy pic.twitter.com/V91bDZKScG
— Santiment (@santimentfeed) 21 July 2022
Meanwhile, cryptocurrencies continue to be highly correlated with stocks. On Thursday, the S&P 500 closed 1% higher, while the tech-heavy Nasdaq ended the day 1.4% higher.
Markets fell into the red in extended trading after Snapchat parent Snap Inc SNAP revealed weak earnings. S&P 500 and Nasdaq futures were trading 0.4% and 0.7% lower, respectively, at press time.
Read next: Did Tesla make money on its $1.5 billion Bitcoin purchase
Photo by Studio13lights on Shutterstock
