[Blockchain Today Reporter Ji-eun Lee] Falling bitcoin prices and falling Tesla stock prices gave Tesla CEO Elon Musk the world’s largest cryptocurrency, Cointelegraph reported.
According to reports, Tesla’s stock price began to decline in late January. And since Tesla’s BTC purchase was announced, the rate of decline below accelerated.
Tesla shares have declined 21% since hitting $890 on January 26th. Since then, the stock has dropped further to $698 per share. On February 23, it was announced that the share price of electric vehicle company Tesla fell 13%, the lowest since early September.
Fox Business argued that Tesla’s share price decline had something to do with Bitcoin. Wedbush analyst Dan Ives saw Tesla’s Bitcoin investment as one of its long-term strategic investments.
FoxBusiness quoted Wedbush analyst Dan Ives, citing the decline in the share price this week due to its link to Bitcoin, and that it believes the move is a long-term strategic move.
“Bitcoin’s decline has to do with the Tesla stock price decline. Tesla has invested more than $1 billion of its cash reserves over a month. This exceeded the harvest of electric vehicles in 2020. Since then, by selling bitcoin, it has increased volatility, and in the short term, investors have sold bitcoin.”
Tesla shares hit $865 on February 8, when Tesla announced it had invested $1.5 billion in Bitcoin. Tesla’s share price hit $681 on February 23, according to Yahoo Finance. Meanwhile, it is analyzed that the Chinese government’s raising of quality issues also affected Tesla stocks.
Tesla holds 48,000 bitcoins. When Bitcoin broke through $58,000 on February 21, it means Tesla’s profits from Bitcoin exceed $1 billion.
Bitcoin prices have dropped significantly this week, but given the purchase price of $39,000, they are still making profits with Bitcoin.
According to the Bloomberg Billionaires Index, the decline in Tesla’s share price left Elon Musk’s top sign. The recent loss of $3.56 billion was significant. According to Bloomberg, the world’s largest wealthy place was again taken by Jeff Bezos. His net worth is $187 billion, and Elon Musk is $180 billion.
Bitcoin once fell to the $48,000 range, dropping in price by more than $10,000 over three days. Bitcoin also rose sharply in January, and fell by more than 30% in the middle.