Changpeng Zhao, CEO of popular cryptocurrency exchange Binance, dismisses Tesla’s Bitcoin sale as unimportant. Zhao says Tesla assets are ‘a drop in the ocean’. Meanwhile, according to a JP Morgan report, retail traders’ demand for crypto assets is on the rise.
Binance CEO downplays Tesla’s Bitcoin snub
Binance CEO Changpeng Zhao claimed in a recent tweet that Tesla’s assets are ‘a drop in the ocean’. Therefore, he found Tesla’s Bitcoin sale unimportant. Zhao estimates that up to $100 billion in Bitcoin is traded every day.
Up to $100 billion of #btc get traded every day. Someone selling $1 billion is a drop in the ocean. https://t.co/jEY9dmLeb2
— CZ 🔶 Binance (@cz_binance) July 21, 2022
cryptocoin.com As we reported, Tesla announced that it liquidated $ 936 million worth of Bitcoin in the second quarter of 2022. This sent shock waves across the cryptocurrency community. The company sold 75% of its remaining crypto assets (apparently at a loss). Tesla CEO Elon Musk dismissed crypto as a ‘side show’ during a conference call. However, he added that the last sale was not a ‘decision’ about Bitcoin. Meanwhile, Musk has not refused to add to his company’s current cryptocurrency position in the future, despite his concerns about the climate.
Optimistic view: Tesla CEO will not be able to affect Bitcoin price
Bitcoin quickly dropped below the $23,000 level on Tesla news. Tesla’s U-turn, on the other hand, debunked another bull Bitcoin narrative about corporate adoption. Tesla made the unorthodox decision to add Bitcoin to its balance sheet in early 2021. Later, it was believed that other large companies such as Facebook or Apple would do the same. However, its adoption as a leading crypto enterprise has gone almost nowhere.
Now Tesla has jumped off the ship. So, according to experts, the probability of other big names making Bitcoin part of their corporate treasures is very low. However, some Bitcoin enthusiasts have seen a silver lining. Tesla’s cryptocurrency holdings have dwindled significantly. Therefore, Tesla’s highly volatile CEO will no longer be able to easily influence the price of Bitcoin.
JP Morgan: Demand for individual crypto rises amid massive liquidation
Even as large liquidations continue on exchanges, things seem to be starting to get easier for individual crypto investors. Market analysts say that the intense selling pressure experienced in the last few months is now over. Meanwhile, it is a matter of debate whether the Bitcoin price will correct in the near future as it trades above $22,000.
According to a JP Morgan report, the demand for crypto assets among individual traders is starting to rise. According to the report, the intense phase of de-leverage appears to be over. However, the data shows that there is still reasonably high liquidity in the market. JP Morgan analysts echo the recent relief from bear trends. In line with this, he says, the worst phase is long past. Analysts make the following assessment:
We think that the most extreme recession since 2018, seen in May and June, is over. The crypto markets have rallied in recent weeks as investors await the Ethereum Merge, which will kick off on September 19.
Also, the highly anticipated Ethereum Merge caused an improvement in investor mood. For this reason, Ethereum network activity has also increased recently.
Individual crypto investors lead the bailout
Interestingly, there is a clear difference between the futures market and its individual space. The JP Morgan report claims that the recovery in asset prices has not been seen in the crypto fund or futures space. Obviously, individual investors are increasing demand in the crypto space. The report includes the following assessment:
Smaller wallets have seen an increase in Ethereum or Bitcoin balances compared to larger wallet holders since late June.
“The worst on the macroeconomic front is yet to come!”
Meanwhile, the Bitcoin price has risen by about 30% since last month’s lows. Bitcoin is trading at $22,865, down 3.83% in the last 24 hours, according to CoinMarketCap. On Wednesday, BTC managed to climb as high as $24,153.
On the other hand, the top executive of another Wall Street bank says the worst is yet to come on the macroeconomic front. On Thursday, Goldman Sachs CEO David Solomon noted that inflation in the US has not yet peaked. If inflation in the country rises in the near future, there is likely to be a potential setback for the crypto market’s recovery prospects.
