Tesla wanted to show bitcoin’s liquidity and its qualities as a substitute to cash by disposing 10% of the crypto value, reports Bloomberg. Through a tweet, CEO Elon Musk said he did not sell his holdings in bitcoin.
Tesla earned $101 million income from bitcoin sale, having purchased about $1.5 billion of the cryptocurrency this year.
Musk has supported crypto assets and said last month that Tesla would start allowing payment for its vehicles using bitcoin
Some strategists believe bitcoin and other digital tokens are speculative and carry high volatility.
Musk’s comments come at a time bitcoin has shed gains from a peak of almost $64,870 in mid-April with its value now below 55,000
Bitcoin is currently declining. BTCUSD is down 1.20%
