Market hopes are seen rising again as Bitcoin price starts to recover from the fall to the $18k trading level 2 weeks ago. However, last week, that hope was further dampened by the emergence of reports that Tesla began selling their BTC holdings.
Bitcoin price has been trading around the $20K level since mid-June. The market is watching closely to see what the 'Whale' group will do. Last week, Tesla reported that they sold 75% of their bitcoin holdings last Wednesday. The streak, the market became worried and began to reduce their holdings.
In Wednesday's earnings call, Elon Musk said:
"The reason we are selling a bunch of our bitcoin holdings is because we are not sure when the Covid restrictions in China will ease so it is important for us to increase our cash position."
Adding to the market's concern is the transfer of up to 242k BTC from wallets to Coinbase. That amount is worth more than $5.4 billion worth of crypto at today's exchange prices. It is the third richest address of the blockchain. Many speculate that it is MicroStrategy's 'Wallet'.
After Tesla recently sold off most of its holdings, there was some concern in the crypto community that MicroStrategy would follow suit. However, blockchain researcher Jarvis Labs disagrees that it is MicroStrategy.
Jarvis Labs also points out that this wallet has been accumulating since 2019. MSTR didn't make its first BTC purchase until 2020, based on federally required regulatory financial disclosures.
It is highly unlikely that the company does not report transparently to the SEC and investors about its balance sheet.
This is FUD.
This one is just an internal transfer to "1LQoW..." which might be a cold wallet or custodian wallet, highly likely owned by @Gemini.
What's obvious is that it's not a user deposit to exchange hot wallets for selling $BTC. Not at all. https://t.co/ieLJ7QEw5T pic.twitter.com/1ianKMwKoW
— Ki Young Ju (@ki_young_ju) July 20, 2022
CryptoQuant CEO Ki Young Ju is also skeptical that the wallet belongs to MicroStrategy who thinks the transfer bears all the effects of an internal transfer, not a transfer of users to an exchange. And he thinks the address belongs to Gemini, not Microstrategy or Coinbase. The CEO of CryptoQuant concluded, “This is FUD.”
