Crypto Community Fears Sell-Off as Elon Musk’s Tesla Moves $760 Million in Bitcoin

The crypto community is abuzz with rumors following Tesla’s transfer of a significant portion of its Bitcoin (BTC) holdings. Over 11,500 BTC were shifted from wallets associated with the electric car giant to unknown addresses, sparking concerns about a possible sell-off.

Despite these transactions, there is no clear indication that Tesla plans to liquidate its holdings. According to Arkham, the recipient wallets are newly created and unlinked to any crypto exchanges, hinting that these movements might be strategic.

Did Tesla Sell Bitcoin Over the Counter?

The Bitcoin in question, valued at approximately $760 million, almost emptied Tesla’s crypto reserves, leaving just around $8 in their original wallets. This activity follows two years of minimal movement.

Historically, Tesla’s engagement with Bitcoin has had various ups and downs. Initially purchasing $1.5 billion in Bitcoin in 2020, the electric car company sold about 10% in early 2021. By July 2022, it had offloaded about 75% of its remaining Bitcoin as market values tumbled from their peak in November 2021.

Read more: Who Owns the Most Bitcoin in 2024?

Currently, Tesla remains the fourth-largest Bitcoin holder among publicly traded US companies. Only MicroStrategy and the mining firms Marathon Digital Holdings and Riot Platforms hold more.

The nature of Tesla’s recent transactions suggests they might be preparing for an over-the-counter (OTC) deal. However, others also believe that this development is not completely bearish.

“No proof it’s an OTC deal yet. Even if it was, that means someone else bought it so it’s not entirely bearish. Who knows,” Sir Doge of the Coin said .

Tesla’s involvement with Bitcoin extends beyond buying and selling. In 2021, it accepted Bitcoin payments for its vehicles for a brief period.

However, it reversed this decision two months later, citing the environmental impact of Bitcoin mining. CEO Elon Musk has indicated that Tesla might accept Bitcoin again if mining becomes more environmentally friendly.

Despite initial market jitters, Bitcoin’s price remains steady, currently around $67,000. This resilience is buoyed by substantial inflows into spot Bitcoin ETFs.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

On the day Tesla moved its Bitcoin, spot Bitcoin ETFs recorded inflows totaling $371 million. BlackRock’s iShares Bitcoin Trust alone garnered $288.84 million, indicating a strong investor appetite.

This inflow underpins the continued confidence in Bitcoin’s value proposition despite potential market fluctuations prompted by major players like Tesla.