Tesla drops cryptocurrency investment as Elon Musk confirms massive bitcoin sale

Valued at around $2 billion after end-2021 quotes, Bitcoin coins held by Tesla were most likely sold below their purchase price, with Elon Musk’s company using last year’s gains to write off losses.

The news from the SpaceX chief comes at a worse time than ever for bitcoin, with the distrust thus expressed by one of America’s most influential entrepreneurs risking ripple effects on investors watching the latest rally in the cryptocurrency market from the sidelines. In fact, Bitcoin’s appreciation seems to have come to a sudden halt after the news that Tesla has already given up 75% of its holdings.

Investor appetite for risky assets is further tempered by Elon Musk’s addition of how the $936 million funds from the sale of Bitcoin were placed in a traditional currency,

The company’s CEO, Elon Musk, has been among the biggest proponents of cryptocurrencies, with his social media posts often driving significant appreciation for the coins he has bought upfront. Perhaps most famously, the scandal surrounding the Dogecoin coin, whose value appreciated significantly after praise on the Tesla chief’s Twitter feed, caught up with numerous other investors who bought at overvalued prices.

Last year, Elon Musk used Twitter to emphasize Tesla’s stance on bitcoin: “Tesla will not sell any bitcoin.” Meanwhile, things took a dramatic turn after Bitcoin’s price fell from an all-time high of nearly $70,000 to just over $20,000, topping the gains of investors who had bet on a quick rebound in share prices.