This would be the hidden reason why Elon Musk sold Tesla’s bitcoins

A week after Tesla announced that it sold 75% of its bitcoins (BTC) at a loss, 2 interesting movements occurred: The price of the cryptocurrency fell from its monthly maximum of USD 24,000 to around USD 20,000 and the shares of Tesla increased up to 13%. Chance? I do not think so.

Some in the networks have called «lettuce hands» to Elon Musk, the CEO of Tesla, for getting rid of his bitcoin so easily in this bearish bump that the cryptocurrency is going through. But Elon Musk may be smarter than you think and may even be laughing at creative memes that poke fun at the sale.

The official reason given by the company is that it was for “maximize your cash positions”. But this tells us little or nothing about the motive that led Tesla to make such a move. One noteworthy move saw them lose $152 million for selling when their investment had depreciated after the bear market.

Plus this sale makes Tesla no longer have as many BTC reserves. While it is still the second most bitcoin-owning publicly traded company in the world, it is now close behind. It went from having 43,200 BTC to 10,800 BTC. And because? What led the company to make this decision?

Does Elon Musk no longer trust bitcoin?

Elon Musk, who uses Twitter so much to post his thoughts, has not commented on this move.. Not only has he kept the sale a secret for more than a month since it was made, but he hasn’t said anything about it since it was disclosed in the company’s quarterly report last week.

Considering this, you might think that Elon Musk no longer trusts bitcoin and is keeping quiet. But far from that Tesla mentioned in its report that it is willing to buy the cryptocurrency later if you think so. Likewise, he did not sell all of his bitcoins. It still holds 10,800 BTC, reflecting its long-term bullish projection.

These are the publicly traded companies that own the most bitcoins in the world; at the moment Tesla is still in second place. Font: BitcoinTreasurie.net.

Also, the fact that Elon Musk has kept the sale a secret speaks of his intention not to create panic in the market. Perhaps on the advice of his lawyers, since his price influence of cryptocurrencies has brought him legal problems in the past.

In fact, It even seemed strategic the day they decided to make this movement known. Tesla released his quarterly report, announcing the sale, just on the day bitcoin hit its monthly high of $24,000. A time when market sentiment had left the longest period of extreme fear behind and its price was on the rise.

Evidently the news fueled bitcoin’s decline to prices that are now trading close to $21,000. But it may have hit the market harder if it was said at a time when fear was mounting among investors. In such a case, we might have seen bitcoin drop lower than the yearly low of $17,600.

Elon Musk: lettuce hands or silent genius?

Now, if Elon Musk still believes in the future of bitcoin, why did you sell 75% of Tesla’s investment in cryptocurrency? In principle, we could interpret two possible reasons: fear or need. That is, the fear that bitcoin will continue to fall in price or the need to use the money for company payments.

Any of these causes could be true, but there is a third reason in all this: the image and position of Tesla. The investment that the company had in bitcoin was not only in the negative, but had also affected its shares.

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After Tesla announced that it sold almost all of its bitcoins, its shares rose in price, while BTC fell. Source: TradingView.

As soon as the company’s latest quarterly report was released, which included the sale of bitcoin, Tesla shares increased 13%. Something that shows the confidence of investors in their results, despite the sale of the cryptocurrency at a loss. Also, making this move allowed the company to not have as much at risk.

In this sense, perhaps Tesla now prefers to show an image “away” from bitcoin speculation, which is a sensitive topic at this moment in the market.. And maybe he picks up your contact later when it suits him. This may be the quiet plan that Elon Musk is pursuing, as he maintains his bullish conviction on cryptocurrency.

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This would be the hidden reason why Elon Musk sold Tesla’s bitcoins