The rollercoaster ride for Bitcoin (BTC) on July 20 saw a promising start with the price reaching over $24,300, but it ended in the negative territory as Tesla disclosed selling off 75% of its Bitcoin assets, and Minecraft opted to ban NFTs on its platform.
The downturn in the afternoon can be attributed to Tesla’s second-quarter earnings report, indicating that the electric vehicle company liquidated 75% of its Bitcoin holdings to bolster its cash reserves by $963 million.
Following the news of Tesla’s sell-off, the Bitcoin price dropped from a high of $24,280 to $22,900 before stabilizing around $23,500.
Traders’ Optimistic Predictions May Have Been Premature
Today’s unexpected drop in Bitcoin’s value may have served as a reality check for crypto traders who were prematurely anticipating the end of the bear market.
While Bitcoin’s pullback has been moderate thus far, several alternative cryptocurrencies experienced more significant declines due to recent price surges, offering traders an opportunity to secure profits.
Among the altcoins, Polygon (MATIC) witnessed an 11.5% decrease after an 87% price surge in the previous week. Arweave (AR) and Filecoin (FIL) also saw declines of 10.84% and 10.2% respectively.
On a positive note, Steem (STEEM) and Reef (REEF) managed to maintain slight gains of 6.27% and 3.15% within the top 100 tokens.
The total cryptocurrency market capitalization now stands at $1.035 trillion, with Bitcoin holding a dominance rate of 42.7%.
The opinions expressed in this article are the author’s own and do not necessarily reflect the views of Cointelegraph.com. As with any investment or trading decision, there are risks involved, and it is advisable to conduct thorough research before making any decisions.
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