The cryptocurrency community is abuzz with rumors that Tesla has transferred a significant portion of its BTC holdings. Around 11,500 BTC were moved from a wallet associated with the electric vehicle giant to an unknown address, raising concerns about a potential sale.
Despite these transactions, there are no clear indications that Tesla plans to dispose of its crypto assets. According to Arkham, the recipient wallet is newly created and not connected to any cryptocurrency exchange, suggesting that this movement may be strategic.
Did Tesla sell BTC over-the-counter?
The BTC in question is valued at around $760 million, which is close to Tesla's entire cryptocurrency holdings. Through this recent BTC movement, Tesla has left only $8 in its original wallet.
Historically, Tesla's involvement with BTC has seen various ups and downs. The electric vehicle company, which purchased $1.5 billion in BTC in 2020, sold around 10% of its holdings in early 2021. By July 2022, it had disposed of about 75% of the remaining BTC as the market value declined from its November 2021 peak.
Read more: Who Will Own the Most BTC by 2024?
Currently, Tesla remains the fourth-largest BTC holder among publicly traded US companies, according to data. Only MicroStrategy and the mining companies Marathon Digital Holdings and Riot Platforms hold more BTC.
The nature of Tesla's recent transactions may suggest preparations for over-the-counter (OTC) trading. However, some believe that this development is not entirely bearish.
"There is no evidence yet of an OTC trade. Even if that were the case, it would mean someone bought it, so it's not entirely bearish. Who knows," said Sir Doge of the Coin in a tweet.
Historically, Tesla's involvement with BTC has had a significant impact on the market. In 2021, the company briefly accepted BTC as a payment method for its vehicles, but reversed this decision two months later, citing environmental concerns around BTC mining.
When BTC was accepted as a payment method, the price rose by nearly 20% in just a few days, and when the decision was reversed, it fell by almost 8%. Tesla's CEO, Elon Musk, hinted that the company could reconsider accepting BTC if mining becomes more environmentally friendly.
Despite the initial market turbulence, the price of BTC is currently around $67,000 and has shown resilience, supported by significant inflows into BTC spot ETFs.
Read more: How to Trade Bitcoin ETFs: A Step-by-Step Approach
On the day Tesla transferred its BTC, spot BTC ETFs recorded inflows of $371 million. BlackRock's iShares Bitcoin Trust alone gathered $288.84 million, indicating strong investor interest.
These inflows support the continued trust in BTC's value proposition, despite the potential market volatility that could be triggered by a major player like Tesla.
