This past week, Bitcoin experienced significant volatility after Tesla CEO Elon Musk made an unexpected endorsement of cryptocurrency.
Discover over $3,000 in benefits, including exclusive access to a network of elite Web3 entrepreneurs, creators, and investors, ensuring you receive top-tier networking and priority entry to international events. Enjoy free access to Forbes.com and our Forbes CryptoAsset & Blockchain Advisor newsletter. Apply today!
Bitcoin’s price, which has risen over 200% since its recent lows in 2022, has surged this year propelled by Wall Street powerhouse BlackRock spearheading a “crypto revolution.”
As Musk cautions that the U.S. is heading toward a state of “bankruptcy,” traders are on alert for Tesla’s third-quarter earnings report, which may shed light on the company’s recent transfer of nearly $800 million in Bitcoin.
Subscribe now to the free CryptoCodex—A daily five-minute newsletter for traders, investors, and crypto enthusiasts designed to keep you informed and ahead in the Bitcoin and crypto market surge.
Tesla stirred the Bitcoin and crypto markets when it unexpectedly transferred its … [+]
“We believe that the movements from the Tesla wallet reported last week were wallet rotations, with the Bitcoin still remaining under Tesla’s ownership,” said blockchain analysts from Arkham
The unexpected transfer of Bitcoin by Tesla last week, which was the first movement in nearly two years, fueled speculation that it might have been intended for an over-the-counter sale.
Earlier in 2022, Musk divested most of the $1.5 billion worth of Bitcoin previously added to Tesla’s balance sheet a year prior to secure profits for the company.
Tesla is expected to announce its Q3 2024 results after trading hours on Wednesday, October 23, which may clarify the reason behind the Bitcoin transfer.
Tesla ranks as the fourth largest corporate holder of Bitcoin, following Bitcoin mining firms Riot and Marathon, as well as Michael Saylor’s software company MicroStrategy, which holds $17 billion in Bitcoin.
This week, Musk caught the crypto market off guard with his endorsement after recently focusing on critiques of U.S. spending, repeatedly cautioning that the U.S. is headed toward “bankruptcy.”
“I find cryptocurrency to be an intriguing and potentially valuable shield against centralized control,” Musk stated during a campaign event for former U.S. president Donald Trump in Pittsburgh when a participant inquired whether the cryptocurrency XRP
“Crypto inherently promotes individual freedom,” Musk added, clarifying that he was not endorsing XRP or any other specific cryptocurrency.
Musk later mentioned he “wasn’t actively involved in crypto,” sidestepping a question regarding the potential use of blockchains, the underlying technology of Bitcoin and other cryptocurrencies, in future elections to mitigate or eliminate voter fraud.
Subscribe now for CryptoCodex—A complimentary daily newsletter for crypto enthusiasts.
This year, the Bitcoin price has surged, nearing its all-time highs, with Musk and Tesla … [+]
In the meantime, Bitcoin and crypto traders are monitoring opinion polls ahead of next month’s U.S. presidential election, which could serve as a “tipping point” for Bitcoin’s price.
“Taking a wider view of Bitcoin, the world’s leading cryptocurrency has been in a holding pattern since March. The pressing question is, ‘what will trigger a significant movement?’” Richard Ptardio, a cryptocurrency and financial markets analyst, commented in an email.
“Bitcoin advocates are counting on next month’s U.S. election as the crucial moment. If Donald Trump regains the presidency, the prospect of a less restrictive administration and the potential dismissal of Gary Gensler as SEC chair could dismantle the barriers needed for Bitcoin to hit new all-time highs,” Ptardio stated.
Trump has shown strong support for Bitcoin and crypto this year, endorsing his family’s World Liberty Financial crypto initiative and marketing four collections of non-fungible tokens (NFTs).
Earlier this year, Trump vowed to establish a U.S. Bitcoin strategic reserve if re-elected, predicting that Bitcoin’s price could eventually surpass that of gold.
“Nevertheless, even with Trump in office, it may be wise for bears to exercise caution,” Ptardio warned. “There are indications that Bitcoin no longer serves as a safe haven against the type of geopolitical uncertainties typically linked to his presidency.”
