Could Tesla’s Board Decide Bitcoin’s August Price?

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Last Updated on 16 July 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Bitcoin has been ranging for almost a month now between $30k and $35k as investors digest the fact that miners have moved from China to the northern part of America (USA and Canada) and whales are accumulating around the $30k level.

There could be another surprise round the corner though, as some analysts believe the Tesla board could be the next price decider for the world’s biggest cryptocurrency.

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Decoupled relationship

Tesla (which invested $1.5 billion dollar in Bitcoin in the beginning of the year) has seen its share price drop almost 4% this month, just as the tech-heavy Nasdaq is gaining ever more ground. In fact, the past few months have been tough for those holding Tesla stock.

It comes at the same time that Bitcoin has dropped from a peak of almost $65,000 in mid-April to about $32,500 as investors retracted from riskier assets like cryptocurrencies are still known to some.

Amy Wu Silverman, a strategist at RBC Capital Markets, explained to Bloomberg that:

Tesla is highly correlated to megacap tech. This relationship has really decoupled in the near term. When I ask around, the feedback I get is that this is related to their Bitcoin exposure and how it will have to be accounted for when they report earnings.

Twitter commentator Nunya Bizniz agreed, and even claimed that the $30,000 level was probably what made the Tesla board edgy.

He believed that if Bitcoin dipped below $30,000, the electronic carmaker would see its initial investment start being underwater, and they could at that point flood the market.

Nunya stated:

What’s Elon Musk’s cost basis? From my calculations its around $30K. Could the board pressure a sale and lead to further downside?

InkDropCreative / Depositphotos.com