Rumors Of MicroStrategy Selling Bitcoin Grow With Tesla’s Disclosure

Bitcoin and the cryptocurrency market lost momentum in the last 24 hours after suffering a rally. Yesterday, Elon Musk-led automaker Tesla announced that it has sold 75% of its BTC holdings to convert it into fiat currency.

Related reading | Cardano (ADA), after up 35%, is holding on to the next target: $0.55

This has fueled speculation that other large BTC holders are offloading their assets into the market. MicroStrategy and its CEO Michael Saylor have been the target of the majority of this speculation.

Over the past week, the third richest Bitcoin address identified as 1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ has transferred 29,200 BTC to exchanges. Crypto users believe this is MicroStrategy’s BTC address.

Therefore, they speculate that the software company sent BTC to the crypto exchange Coinbase. Over the past week, this address moved 132,800 BTC to this platform, which is roughly the amount held by the company led by Saylor.

BTC price is moving sideways on the 4 hour chart. source: BTCUSDT TradingView

Did Tesla Cause a Domino Effect to Sell Bitcoin?

Research company Jarvis Labs question Rumors claim that the title likely belongs to a “big trader”. The wallet has been accumulating bitcoins since January 2019.

MicroStrategy and Saylor revealed that the first purchase of BTC took place in 2020. The software company is a publicly traded company in the United States and must be transparent about its treasury strategy or risk facing legal consequences.

Jarvis Labs highlighted the complexity of labeling BTC addresses and dismissed the rumors with the following statement:

Portfolio labels are incredibly complex and a sensitive topic. As they lack assurances from the concerned authority most of the time. So take such noises with a grain of salt. Relax, it’s not sold yet, even assuming it’s a Saylor MSTR wallet.

Saylor Responds to Rumors About Their Bitcoin Holdings

CryptoQuant CEO Ki Young Ju claims that rumors about the wallet dumping its own bitcoins into the market are “FUD.” The executive said the transactions associated with 1P5Z are part of an internal transfer.

In this sense, Young Ju said that BTC may have been sent to a cold wallet or custodian, possibly owned by cryptocurrency exchange Gemini. Young Joo said:

For the record, “1FzW…” has closer links with hot wallets like “1NYA…” and “bc1quq…” and these are not Coinbase or OKx. These are hot Gemini wallets, and a lot of data providers on the chain have misnamed them. See this tweet for more details.

Related reading | Polkadot (DOT) gathers steam, sights set at $8.07 resistance

In response to all this rumors and speculation, Saylor tweeted two emojis representing “diamond hands.” In the past, the executive has said that their plans are to hold bitcoin “forever,” rejecting any idea of ​​getting rid of their bitcoins.

Leave a Comment

Your email address will not be published.