Tesla selling their digital assets is an interesting Bitcoin news. In the Quarterly earnings report for Tesla, if you go and look at the Tesla earnings report it is in millions of USD and it is very clearly stated that Tesla bought 1500 million dollars’ worth of Bitcoin, which was 1.5 billion dollars’ worth of Bitcoin. anyone who has been following Bitcoin News already know very well about this as it was covered very well in several news channel and this eventually triggered interest in retail and institutional investors.
Reportedly, the proceeds from the sales of digital assets shows some 272 million. This is just proof of that even if institutions are going to buy BTC, they are not always going to hold it forever and ever and ever. It is important to understand that institutions will sell Bitcoin.
This does not mean that institutions are to be blamed for creating a certain belief system. Not really. It is just practical for institutions to cash out the BTC when it doubles up in price. It is also obvious per, Benjamin Cowen that the market cycle is for institutions to really come in to the market.
This is clear evidence that will also be something that institutions occasionally sell.
Elon Musk has reportedly tweeted that he has not sold any of his Bitcoin, but Tesla has sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to hold cash on the balance sheet.
Thus, the myth that institutions will not sell BTC is simply not true. Institutions coming to the market in reality is expected to diminish volatility as it has been seen before. The price of Bitcoin can go a lot up and down. However, at the macro scale, diminished volatility is seen. Thus, it is practical to not believe in this mindset that no institutions will ever sell Bitcoin.
At times, they will. And, it does not mean that BTC is still not worth. It is just clear that some of the narrative that institutions will buy and hold BTC for 20 and 30 years is not worth it or true.
However, there is no denying that some institutions like Microstrategy appear to be like they don’t want to sell it, by looking at the many interviews; however, several of the institutions out there will sell Bitcoin, if they see it just like lot of us see it.
As Elon says, they might do the selling to “prove liquidity of the Bitcoin” as an alternative to holding cash on Balance sheet.
