Did Tesla Just Move The Crypto Market? Here's Why Bitcoin Is Falling

Did Tesla Just Move The Crypto Market? Here's Why Bitcoin Is Falling

Tesla Inc TSLA shares are trading higher in Wednesday's after-hours session after the company announced better-than-expected earnings results. The EV company's report is also impacting the crypto market after the Elon Musk-led company said it trimmed its Bitcoin BTC/USD holdings.

What Happened: At the beginning of 2021, Tesla announced that it bought $1.5 billion worth of Bitcoin. The company also began accepting certain cryptocurrencies like Bitcoin and Dogecoin DOGE/USD for merchandise payments.

In the company's quarterly report Wednesday, Tesla announced that it has converted approximately 75% of its Bitcoin purchases into fiat currency. Conversions in the second quarter added $936 million of cash to the company's balance sheet.

Bitcoin turned sharply lower after Tesla's earnings report was released.

See Also: How To Trade Tesla Stock Before And After Q2 Earnings

$BTC Price Action: Bitcoin was down 2.66% over the last hour at $23,138 at press time. Despite the drawdown, the world's oldest and largest crypto is still up more than 17% over the last week.

Photo: Petre Barlea from Pixabay.

Posted In: Elon Muskwhy it's movingCryptocurrencyMarketsMoversTrading Ideas

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