One thing’s for sure, Tesla’s CEO knows how to generate headlines. The infamous Elon Musk was the talk of the town today, as news of his company selling 75% of their bitcoin hit the wires. The reactions go from clowning Musk to overanalyzing the situation and everything in between. What a fun day in crypto land.
What did the people write and how did they tweet it? Let’s find out.
Laughing At Tesla Or Laughing With Tesla?
Considering that at best Tesla broke even on this trade, the Internet didn’t clown the company as hard as it should have. People seemed to respect Tesla’s right to do whatever they want with their coins. Let’s wait for bitcoin’s price to pump before making a definite statement on this, though. In the meantime…
- MicroStrategy’s CEO Michael Saylor stated the obvious in a hilarious way – “If you sell 75% of your bitcoin, you will only have 25% of your bitcoin left.”
- Nat Brunell, host of Bitcoin Magazine’s “Hard Money” show, made a silly but effective pun – “You Musk not sell your Bitcoin”
- Crypto analyst Inmortal invoked millennial powers – “You are the richest man in the world and you panic sold $BTC at loss? Ok boomer.”
- Bitcoin Magazine showed us what happens “When you buy high and sell low”
When you buy high and sell low pic.twitter.com/y5gSqyWqmc
— Bitcoin Magazine (@BitcoinMagazine) July 20, 2022
- The magazine’s editor, Pete Rizzo went back in time, “Elon Musk on Bitcoin exactly 1 year ago”
✨ Elon Musk on #Bitcoin exactly 1 year ago
— RIZZO (@pete_rizzo_) July 21, 2022
How everyone reacted to @elonmusk‘s paper hands. pic.twitter.com/gU7TNQpGy4
— Handre van Heerden (@Handrev) July 21, 2022
- National state adoption evangelist, Samson Mow clowned Tesla hard at first, “Buy high, sell low. Tesla showing us how it’s done!” Then, he changed his tune to something more politically correct, “Almost everyone that sold this dip had no choice but to sell, and none of the reasons had anything to do with Bitcoin fundamentals. I’d say we’re on the way back up and decoupling soon.”
BTC price chart for 07/21/2022 on Bitfinex | Source: BTC/USD on TradingView.com
Fundamental Analysis Of The Situation
Taking itself too seriously, the crypto industry went full Sherlock Holmes on the Tesla situation. And thank God they did, because the analysts actually made some phenomenal and very interesting points. For example:
- Riding for Elon Musk, Binance’s CZ talked numbers – “Up to $100 billion of btc get traded every day. Someone selling $1 billion is a drop in the ocean.” Interesting and higher than expected numbers. And CZ should know about this topic in particular.
- The Coin Bureau guy downplayed the situation and its effect – ”It was only a matter of time that we would see this. The market has brushed it off though.”
It was only a matter of time that we would see this. The market has brushed it off though. pic.twitter.com/c2JQc4G8bc
— Coin Bureau (guy.eth) (@coinbureau) July 21, 2022
on @elonmusk & #Bitcoin pic.twitter.com/M4g9rwfynT
— LN Markets (@LNMarkets) July 21, 2022
- Professional trader MisterSpread stated the obvious in a funny way – “Seriously now, thank you Elon for the big stress test you made Bitcoin go through and showed the whole world that Bitcoin is money after Tesla bought and sold billions worth of it.”
- For his part, Bitcoin Lebowsky stated the facts– “The fact that Bitcoin is still at 23k after months of miners selling, Tesla selling, the Macro disaster and of course all of the ongoing FUD, is nothing short of remarkable.”
- Trader and Arca’s CIO, Jeff Dorman broke it down – “If you’ve ever wondered whether or not trading bots control digital asset trading…keep in mind the entire digital asset market just fell on news that one company (Tesla) sold one asset (BTC) 1-3 months ago. ”
If you’ve ever wondered whether or not trading bots control digital asset trading…keep in mind the entire digital asset market just fell on news that one company (Tesla) sold one asset (BTC) 1-3 months ago.
Expect full retrace of this move quickly. https://t.co/cAX3rbGlwR
— Jeff Dorman, CFA (@jdorman81) July 20, 2022
- Swans’ Steven Lubka sees the bright side – “The Tesla news is bullish, now Elon can’t sell his Bitcoin again and it’s been purchased in the 20s by more reliable and less erratic actors.”
That’s one of the key takeaways, Tesla is no longer in a position of power and Elon cannot easily manipulate bitcoin’s price anymore. Also, the network is liquid and can handle stress phenomenally. And it’s not controlled by trading bots. We learned all of that and more from a simple trade.
Featured Image by Priscilla Du Preez on Unsplash | Charts by TradingView