Bitcoin could completely crash. In Q2 Tesla sold off 75% of its holdings, one of the main buyers at $1.5 billion, the company took a hit. U.S. Dollar strength and interest rate hikes, the era of speculation is over.
Bitcoin is most likely ready for a complete crash in its price or assigned value, with its number one proponent and advocate Elon Musk dumbing 75% of his company holdings, that being Tesla, allowing the company to rake in a $64 million gain on a $936 million sale, whilst still holding $222 million, which equated to an impairment loss of the company's books at $170 million. Quite a nasty hit, considering Tesla pumped in (2021 Q2) $1.5 billion to buy Bitcoin. Refer to Chart 1.
Bitcoin, technically has no price supports and is trading aimlessly on the back of off and on again U,S. dollar weakness. Barely holding bids above $21565, if the psychological support of 20000 (red line) is breached on the back of a possibility that the Fed will offer a larger rate hike at 1.00%, the U.S. Dollar demand will send BTC into a capitulating sell off. Refer to Chart 2.
The yellow line, separate pane beneath both charts, shows the total of Crypto holdings at $950 Billion, down from 1.7 Trillion in May 2022 when the institutional investors, apparently, were buying in.
Be careful and wise.
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