“Easy come, easy go” was the story on July 20, when the day started on a positive note as Bitcoin (BTC) surged above $24,300, only to end the official trading day in the red after less than stellar Q2 earnings news showed that Tesla sold 75% of its Bitcoin and Minecraft reversed course by deciding to ban NFT on its platform.
A potential source of the daily decline can be traced to Tesla’s Q2 earnings data, which showed the electric vehicle company sold 75% of its bitcoin holdings to add $963 million in cash to its balance sheet.
So, not only forced sale from 3AC, $MOON & $USTbut Voyager, BlockFi and Celsius also cause the market to crash.
In addition, Tesla sold 75% of its #Bitcoin shopping for cash.
That’s what caused the accident.
That’s why we’re close to the bottom.
— Michael van de Poppe (@CryptoMichNL) July 20, 2022
Shortly after the Tesla news broke, the price of bitcoin pulled back from its daily high of $24,280 to $22,900 before stabilizing around $23,500.
Bitcoin Price Hits $24K, But Analysts Say Online Data Points To ‘Inevitable’ Pullback
Traders’ bullish assessments may have been premature
Today’s surprise pullback may also have helped give crypto traders a little glimpse into the bear market, who were ready to call for an end to the bear market.
Many of you guys didn’t survive the first few months of the bear market and it shows.
You freak out over dead cat jumps and bull traps, acting like a quick pump is the end of a bear cycle.
Unfortunately, there is only one way to learn.
– Vlad “BTCTKVR.com” Kostya ⚡️ (@TheVladCostea) July 19, 2022
While bitcoin’s pullback has been relatively mild so far, several altcoins have experienced sharper declines as recent price spikes have created a great opportunity for traders to take some profits.
The Ethereum (ETH) second layer solution Polygon (MATIC) is up 11.5% after a week in which the token surged 87%. The price of the Arweave (AR) token fell by 10.84%, while that of Filecoin (FIL) fell by 10.2%.
On the other hand, the only tokens in the top 100 that managed to maintain positive gains for the day are Steem (STEEM) and Reef (REEF), which recorded modest gains of 6.27% and 3.15%, respectively.
The total market capitalization of cryptocurrencies currently stands at $1.035 trillion, with a Bitcoin dominance rate of 42.7%.
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Credit : cointelegraph.com