Elon Musk’s Tesla company has sold 3/4 of its total Bitcoin holdings, worth some $936 million. The reason cited is the company’s loss of Bitcoin-related profit in Q2 2022.
Following the news, Bitcoin’s value quickly dropped. According to Coinbase, its current price is $22,804. In comparison, on Wednesday, it stood above $24,000. Similarly, in the same period, Ethereum’s value dropped from $1,605 to $1,488.
Another reason behind the electric car company’s riddance of Bitcoin is the Covid lockdown in China. Major Covid-related restrictions are still in place in China, causing a significant decline in its economy.
However, Musk stated that this doesn’t mean Tesla will be uninterested in Bitcoin in the future. In Tesla’s Q1 2022 report, the company states that it sees potential in digital assets as an investment opportunity and substitute for fiat money. Musk also noted that his company didn’t sell any Dogecoin, famously endorsed in the past by the billionaire.