The story on July 20 was that the day started on a positive note, with the price of Bitcoin (BTC) surging above $24,300, only to end the official trading day in the red after news about earnings Less-than-stellar Q2 data showed Tesla selling 75% of its Bitcoin and Minecraft changing course by deciding to ban NFTs on its platform.
One possible source of the afternoon drop can be traced to Tesla’s Q2 earnings data, which showed the electric car company selling 75% of its Bitcoin holdings to add $963 million in cash to your balance.
So, not only forced selling from 3AC, $MOON & $USTbut also Voyager, BlockFi and Celsius have been causing the markets to crash.
On top of that, Tesla did sell 75% of their #bitcoin purchases towards cash.
That’s what caused the crash.
That’s also why we’re close to bottom.
— Michael van de Poppe (@CryptoMichNL) July 20, 2022
So, not only the forced sale of 3AC, $LUNA & $UST, but also Voyager, BlockFi and Celsius have been causing the markets to fall.
On top of that, Tesla sold 75% of his #Bitcoin purchases for cash.
That’s what caused the crash.
That is why we are also close to hitting rock bottom.
Shortly after the Tesla news broke, Bitcoin price fell back from its daily high of $24,280 to $22,900 before stabilizing around $23,500.
Traders’ Bullish Estimates May Have Been Premature
Today’s unexpected pullback may also have helped bring some bear market perspective to crypto traders who were ready to call for an end to the bear market.
Lots of you guys haven’t gone through the early months of a bear market and it shows.
You get excited over dead cat bounces and bull traps, act as if a quick pump is the end of the bear cycle.
Sadly, there is only one way to learn.
— Vlad “BTCTKVR.com” Costea ⚡️ (@TheVladCostea) July 19, 2022
Many of you have not been through the first few months of a bear market and it shows.
They get excited about dead cat bounces and bull traps, and act as if a quick rally is the end of the bear cycle.
Unfortunately, there is only one way to learn.
While Bitcoin’s pullback has so far been relatively mild, multiple altcoins saw steeper declines as recent price rallies created a good opportunity for traders to make some profits.
Ethereum (ETH) layer two solution Polygon (MATIC) has seen 11.5% after a week in which the token surged 87%. Arweave (AR) saw its token price drop by 10.84% and Filecoin (FIL) saw a 10.2% pullback.
On the other hand, the only tokens in the top 100 that have managed to maintain positive gains on the day are Steem (STEEM) and Reef (REEF), which posted slight gains of 6.27% and 3.15% respectively.
The global cryptocurrency market capitalization now stands at $1.035 trillion and the dominance rate for Bitcoin is 42.7%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.