Tesla sells BTC but the crypto outperforms the S&P 500
Tesla sells BTC but the crypto outperforms the S&P 500
Crypto

Tesla sells BTC but the crypto outperforms the S&P 500

By Patrick Verardi - 26 Jul 2022

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Last week we saw electricity giant Tesla‘s (TSLA) quarterly earnings report that showed results well above analysts’ expectations. 

Tesla rising in the latest quarter

Despite Tesla’s massive sale, Bitcoin manages to outperform the S&P 500

Part of the success is due to an increase in prices of products sold by the company at a 1-to-1 ratio compared to inflation and commodity price increases, but there is more. 

The quarterly success is due to a combination of factors among them the near-full capacity operation of the Berlin gigafactory, which recovered what was not produced by its Shanghai counterpart. 

In fact, the Chinese government, due to the reappearance of outbreaks of the virus, proceeded with new closures that created quite a few problems for Musk by preventing him from producing for weeks. 

However, the gap has been successfully closed by the Berlin facility that opened only a few months ago. 

The news that was most surprising, however, was the massive sale of Bitcoin and crypto in Tesla‘s portfolio. 

The company sold 75% of its assets set aside in cryptocurrencies, which largely consisted of Bitcoin

The average purchase price was around $28,000 while the realization price was around $19,000 but the transactions dated back to the March-June quarter. 

Although the sale was made at a loss, Elon Musk explained that the company needed liquidity to cope with the unknowns of the future, a possible and much-acclaimed recession and likely future new lockdowns at its Shanghai gigafactory

He emphasized that the sale was by no means a loss of interest or confidence in BTC, in which he will reinvest in the near future. 

In the meantime, despite not being at the levels of its high last year of $69,000, BTC this month experienced a rally. 

Bitcoin this month has outperformed the S&P 500 by 130% showing a nice sign of strength and, despite recently having fallen back below $22,000, many analysts believe the trend is beginning to change. 

The news was highlighted by Bitcoin Magazine which points out that outperforming the S&P 500 is no small feat

Some analysts believe that the bottom has been reached around the $21,000 mark and that we are now slowly aiming for the $24,000 mark. 

In contrast, other analysts are of the opinion that the bottom is further down towards the $14k/15k mark. Obviously, no one has a crystal ball, but during this period it has become apparent that the faithful and those who really believe in the project are staying with BTC

This is an accumulation phase that many investors are taking advantage of, the bottom is near although it is not known at what level and when it will arrive. 

In the meantime, BTC is trading at $20,619.31, down 1%.

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