The most popular name in the crypto industry Bitcoin (BTC) Prices of cryptocurrencies, including cryptocurrencies, are highly volatile after conflicting signs from regulators and rising interest rates.
Although digital assets actually have a pretty good sales rate, Tesla (NASDAQ: TSLA) Its CEO, Elon Musk, is among those still on the rise when it comes to digital currencies. The $1 trillion company has recently caught the plus sign of movements in the cryptocurrency market.
Bitcoin Price Drop
After hitting an all-time high of $67,500 in November, Bitcoin price is now hovering around $40,000 since the beginning of the year. The declines are partly due to the US Federal Reserve’s announcement to launch its own digital currency, similar to China’s e-renminbi, and the latest order from US President Joe Biden to direct government agencies to coordinate on a regulatory framework for digital currencies.
Last year, Tesla announced that it had invested a total of $1.5 billion in Bitcoin, implying that it could buy and hold digital assets “from time to time or over the long term.” Since this announcement in February 2021, the company has not made any additional purchases of Bitcoin.
Tesla announced in its 2021 annual report that it still has approximately $1.26 billion worth of digital assets and has suffered an impairment loss of $101 million in digital assets.
The electric car industry leader has repeatedly reiterated his confidence in the long-term potential of digital assets as both an investment and a liquid alternative to cash at the same time. However, Tesla warned in a vague statement that it could increase or decrease its digital asset holdings based on business needs and market conditions. However, as reported by Bloomberg, knowing Tesla’s reliance on Musk as “product architect and social media manager”, the company’s position in digital currency may be much closer to his own personal opinion than the above statement suggests.
More than a month after the company was announced, Elon Musk insisted on Twitter that he owns his own personal Bitcoin, Ethereum or Dodge holdings and won’t “sell”, emphasizing that “usually it’s better in companies to have physical things like a house or stock. You think you produce better products than the dollar when inflation is high,” he commented.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.