When Tesla announced that it has sold 75% of its digital assets, leading many to expect the crypto market to witness heat, especially from bitcoin investors. However, bitcoin has managed to float and reduce the impact. Tesla sold its bitcoin holdings to run up its cash reserves.
Tesla invested $1.5 billion in Bitcoin in the first quarter of 2021. In its SEC filing on July 25, Tesla said, during the three and six months ended June 30, 2022, it reported a loss of $170 million as well as an actual profit of $64 million. Convert your holdings of digital assets into fiat currency. In the first half of 2022, Tesla also realized a profit of $128 million in connection with the conversion of our holdings of digital assets into fiat currency, in addition, the company reported $23 million and $50, respectively, of impairment losses on bitcoin. million entered. In addition, the company reported other expenses of $36 million related to recent employee terminations during the three months ended June 30, 2022.
As of June 30, 2022, Tesla has converted approximately 75% of its purchases into fiat currency. There is now a total of $936 million in digital asset-related net cash flow from the sale of digital assets in the six months ended June 30, 2022. That said, the company’s remaining digital assets have a fair market value of $222 million as of June 30, 2022.
Reportedly, Musk has said that Tesla’s latest sale in bitcoin should not be seen as a final verdict on the cryptocurrency. He cited the precarious COVID situation in China as the main reason for boosting cash reserves and book gains in bitcoin. However, the Tesla CEO has hinted at increasing his bitcoin holdings in the future. The billionaire also revealed that the company has not sold any Dogecoin.
On Thursday, bitcoin was trading at $23,599.39, up 9.91% in 24 hours, according to data from CoinMarketCap. While its counterpart Ethereum climbed 14.95% to $1,709.18. On the other hand, Dogecoin is trading up 8.16% at $0.06799.
In a week, Bitcoin is up around 5%, while Dogecoin is down about 1%.
According to data from CoinDesk, Dogecoin is down around 4% monthly, while the coin is down by about 52.5% semi-annually. Year-to-date, Dogecoin is down more than 61% in one year, down almost 68%.
In contrast, on CoinDesk, bitcoin is up about 12% in a month. However, bitcoin is down about 38% semi-annually, while the year-to-date leader is down about 51%. In one year, bitcoin is down about 42%.
Bitcoin is recovering faster than Dogecoin from sharply volatile market conditions that began in May.
Created by Billy Marcus of Portland, Oregon and Jackson Palmer of Sydney, Australia, Dogecoin (DOGE) is based on a popular internet meme ‘Doge’, and is an open-source digital currency. Since it contains the Doge meme, the founders of Dogecoin believe that the coin is a fun, light-hearted cryptocurrency and has the potential to attract beyond bitcoin’s original audience. Unlike Bitcoin, Dogecoin has a block time of 1 minute and its total supply is uncapped. This means that there is no limit on the number of mined Doge. An investor can mine Doge either individually or by joining a mining pool. The mining limit of bitcoin is 21 million.
Trading in bitcoin began in 2009 without any source from its management or owner. No one knows who invented this digital coin till date, however, many speculations and names have emerged. Bitcoin gained popularity in early 2017, and it became the first cryptocurrency to be in actual use. Bitcoin is decentralized and readily available.
Should you invest in bitcoin or dogecoin?
Dilip Seinberg, Founder and CEO, Muffinpay, Bill Payment & Utility Crypto, said, “The crypto market is facing tough times in terms of price action. The aggressiveness of the US Fed rate hike and rising inflation will determine the movement of the market. Short term. As far as bitcoin is concerned, it raised the $23,000 mark over the past week, but is now near $21,000. If it breaks this mark high enough, we could see $17,000 , which was its previous psychological low.”
“Conversely, when it comes to Dogecoin, it has been acknowledged of late. Even whale activity around Dogecoin has increased dramatically, spiking. But such opportunities and Musk’s push have been stifled.” The effect does not last long as there is a substantial reduction in use cases. We would suggest investors to be cautious and allocate only a small amount to the token.”
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