Tesla dumps bitcoin: What experts have to say
moneycontrol.comElon Musk's Tesla has revealed that it sold off 75 percent of its bitcoin, worth $936 million, in 2021.
The value of the cryptocurrency has fallen sharply, compelling the electric car maker to abandon it.
However, Musk, one of the most eminent business personalities to promote cryptocurrencies, has indicated he may buy Bitcoin again in the future.
In his company's earnings call on July 20, Musk said Tesla selling bitcoin should not be considered as "some verdict" on the digital currency, Coindesk reported.
"We were concerned about overall liquidity for the company given Covid shutdowns in China," Musk was quoted as saying by the website.
Experts had varying reactions to Tesla's bitcoin sell-off.
“Musk said the sale wasn’t a verdict on Bitcoin, just a cash play, and it looks like the market has taken him at his word," Tommy Honan, the head of strategic partnerships of crypto exchange Swyftx’s, told Cointelegraph.
"Bitcoin’s price has stabilized over the last 24 hours and we’d be surprised if other big investors followed suit, especially given the current price of Bitcoin," he added.
Markus Thielen, chief investment officer digital asset manager IDEG, said bitcoin was being “seen as a distraction" from Tesla's core business.
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