Easy come, easy go was the story on July 20 as the day started on a positive note with Bitcoin (BTC) climbing above $24,300, only to end the official trading day in the red after less than stellar Q2 earning news showed Tesla sold 75% of its Bitcoin and Minecraft reversed course by deciding to ban NFTs on its platform.
A potential source of the afternoon downturn can be traced to Tesla’s Q2 earnings data, which showed that the electric car company sold off 75% of its Bitcoin holdings in order to add $963 million in cash to its balance sheet.
So, not only forced selling from 3AC, $LUNA & $UST, but 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.
— Michaël van de Poppe (@CryptoMichNL) July 20, 2022
Shortly after the Tesla news broke, Bitcoin price pulled back from its daily high at $24,280 to $22,900 before stabilizing around $23,500.
Related: Bitcoin price hits $24K, but analysts say on-chain data points to an ‘inevitable’ pullback
Traders bullish estimates may have been premature
Today’s unexpected pullback may have also helped to bring a little 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
While the pullback for Bitcoin has thus far been relatively mild, multiple altcoins experienced steeper declines as recent price runups created a nice opportunity for traders to book some gains.
The Ethereum (ETH) layer-two solution Polygon (MATIC) has saw an 11.5% following a week in which the token…
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