Bitcoin exchange rate and hash rate continue to move towards recovery, while Elon Musk has to justify Tesla’s Bitcoin sale. The market update.
The Bitcoin price can continue to recover from the most recent crash: With a daily plus of 3.6 percent, the crypto reserve currency has recaptured the 54,000 USD.
After the computing power in the Bitcoin network responded on April 15 with an all-time high of 197.8 exahashes per second (EH / s) to the record level for the Bitcoin price, a sharp drop to 106 EH / s (April 17) followed. – the lowest level since November 2020. The collapse in the hashrate correlated with the interim shutdown of Chinese coal mines in the province of Xinjiang. With a slight delay, the Bitcoin rate followed the hash rate on its journey south.
If you look at the still bullish Miners Position Index (MPI), the impression that the miners did not take their machines off the grid in mid-April for economic reasons becomes more solid. The MPI shows the ratio of BTC that all miner’s wallets leave to their annual moving average. Values above 2 indicate that most miners are selling.
As from the data of the on-chain analysts at Cryptoquant emerges, the MPI has been mostly negative since the beginning of March. In other words: Bitcoin miners held onto digital gold with diamond hands even after reaching the last record highs for the Bitcoin course.
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Tesla pimps balance sheet with Bitcoin sales
The US automaker Tesla has released its Quarterly figures caused a stir in the crypto community on April 26th. After the group of the self-proclaimed “technokings” Elon Musk had BTC cops scratching their feet with the announcement of his Bitcoin investment in the spring, it became clear yesterday that Tesla is not a “hodler of last resort.” Because of the net income of 438 million USD that Tesla generated in Q1 2020, 101 million USD is accounted for by Bitcoin sales.
Elon Musk then had to hear from parts of the Twitter community the accusation that he had “paper hands” and had misled the community by pretending to be Bitcoin bullism. At the forefront was sports blogger David Portnoy, who with his alter ego “El Presidente” is rarely at a loss for controversial remarks. Compared to his 2.4 million followers, Portnoy put one Question of understanding, combined with a warning about Bitcoin:
So do I understand that correctly? @elonmusk buys #Bitcoin. Then he pumps it. He rises. Then he dumps it and makes a fortune. Listen, I own #Bitcoin but #Bitcoin is exactly what we thought it was. Just don’t be the last #HODLer.
The Tesla CEO’s reply was not long in coming. Elon Musk made it clear in his response that he personally did not sell. Rather, the Bitcoin sale by Tesla served to prove that BTC was a liquid asset. Referring to Portnoy’s provocative question, he said:
No you have not. I didn’t sell any of my bitcoin. Tesla sold 10 percent of its holdings, essentially to prove Bitcoin’s liquidity as an alternative to keeping cash on balance sheet.
Apparently there are still one or two Nocoiner in the Tesla management team who need such persuasive work.