Tesla’s Crypto Holdings Move as BTC Tests the $68,000 Resistance Level

Written by: BitpushNews

 

On Tuesday, the cryptocurrency market rose, coinciding with the near-complete transfer of Tesla's Bitcoin holdings after two years of dormancy. According to data from Arkham Intelligence, around 21:30 UTC on October 15, addresses associated with Tesla transferred approximately $765 million worth of BTC (11,509 coins) in batches to multiple unknown wallets, which appears to be the company's remaining Bitcoin reserves. As previously reported by Bitpush, in the first quarter of 2021, after Bitcoin surged to nearly $62,000, Tesla sold $272 million worth of Bitcoin, realizing a profit of $128 million. The company also sold $936 million worth of Bitcoin in the second quarter of 2022, bringing in $64 million in profit. The latest transfer's purpose remains unclear; some analysts believe Tesla may be strategically reallocating its assets, while others speculate that these transfers might indicate potential sales or a reintroduction of Bitcoin as a payment option for its electric vehicles. According to BitcoinTreasuries data, Tesla is the fourth largest holder of Bitcoin among publicly traded companies, following software company MicroStrategy, Bitcoin mining firm MARA Holdings, and Riot Platforms.

 

Bitpush data indicates that during Tuesday's early trading, Bitcoin's price fluctuated upward, reaching a peak of $67,960, the highest level since July 29. It then quickly dropped to $64,787, but after lunch, it rose again above $67,000, with the next key resistance level at $68,000. At the time of publication, Bitcoin was trading at $66,760, reflecting a 24-hour increase of 0.68%. Most altcoins in the top 200 by market capitalization experienced losses on that day. Storj (STORJ) led the gains, rising 22.1%, followed by Scroll (SCR) with a 13.7% increase and Metis (METIS) up 9.9%. Saga (SAGA) saw the largest decline, dropping 11.5%, while Mog Coin (MOG) fell by 10.7%, and Sui (SUI) decreased by 9.4%. The total cryptocurrency market capitalization currently stands at $2.3 trillion, with Bitcoin's market share at 57.5%.

 

In the U.S. stock market, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite were mostly in the red during trading hours, closing down 0.76%, 0.75%, and 1.01%, respectively.

 

Bitcoin Open Interest at Record Levels, Driven by Institutional Investors

 

Data shows that Bitcoin's open interest is at record levels. Polymarket's market sentiment indicates a 64% chance that Bitcoin will reach a new high in 2024, up 9% from last week. Analysts from Secure Digital Markets report that this is primarily driven by institutional investors, with the weighted funding rate for open interest contracts currently at a multi-month high, reflecting bullish prospects in the short to medium term. Additionally, a total of $810 million flowed into spot Bitcoin ETFs over the past two trading days, with Fidelity and ARK seeing the largest inflows. Meanwhile, Ethereum (ETH) attracted $17 million in inflows yesterday, largely contributed by BlackRock's products.

 

JPMorgan Analysts Bullish

 

JPMorgan analysts released an alternative investment outlook and strategy report emphasizing the bullish momentum of Bitcoin, led by Managing Director Nikolaos Panigirtzoglou. The analysts stated, "In summary, we are optimistic about digital assets in 2025," highlighting several factors driving their outlook, including the emergence of "devaluation trades," where investors turn to alternative asset classes such as gold and Bitcoin to hedge against economic instability. They noted that, with rising geopolitical tensions and the upcoming U.S. election dominating headlines, speculative institutional investors like hedge funds may view gold and Bitcoin as beneficiaries of this trend. Polls suggest an increasing likelihood of a Trump victory, and analysts indicate that tariffs and expansionary fiscal policies (also known as debt devaluation) linked to geopolitical tensions could further weaken the dollar, enhancing devaluation trades. Other positive factors include traditional wealth advisors like Morgan Stanley allowing recommendations of spot Bitcoin ETFs to clients, as well as creditors of Mt. Gox and Genesis halting large-scale Bitcoin liquidations and impending cash payouts following FTX's bankruptcy, which may be reinvested into the market. Analysts also emphasized that the market capitalization of stablecoins is nearing previous peaks of around $18 billion (the levels before the Terra/Luna collapse in 2022). U.S. stablecoin legislation is likely to emerge sometime in 2025, with anticipated increases in adoption rates once implemented, making stablecoins more mainstream.

 

Ledn Chief Investment Officer John Glover analyzed on the X platform that Bitcoin's price has "broken out of a parallel channel."

 

John Glover stated, "Typically, for safety, I look for two consecutive daily closing prices above or below the trend line breakout point, so while it's not time to go all in just yet, this breakout could indicate the next upward move, retesting the $73,000 high. Please be patient for the closing price confirmation, as we need to maintain above $65,000, but from a technical perspective, BTC's momentum looks promising."

 

This article is sourced from Foresightnews:

https://foresightnews.pro/article/detail/69690

AIC Team

Date: 2024/10/21