Binance CEO Changpeng Zhao says that amount of Bitcoin that Tesla liquidated during second quarter was “drop in the ocean”
In a recent tweet, Binance CEO Changpeng Zhao downplayed the significance of Tesla’s recent Bitcoin sale, claiming that its holdings were “a drop in the ocean.”
Zhao has estimated that up to $100 billion worth of Bitcoin gets traded every single day.
As reported by U.Today, the leading e-car manufacturer announced that it had liquidated $936 million worth of Bitcoin during the second quarter of 2022, sending shockwaves across the cryptocurrency community. The company sold 75% of its remaining crypto holdings (seemingly at a loss).
Tesla CEO Elon Musk dismissed crypto as a “sideshow” during a conference call, but he also clarified that the recent sale was not a “verdict” on Bitcoin. The entrepreneur did not rule out adding to his company’s existing cryptocurrency position in the future despite his climate-related concerns.
Bitcoin swiftly dropped below the $23,000 level on the Tesla news. The e-car maker’s U-turn demolished yet another bullish Bitcoin narrative about corporate adoption. After Tesla made an unorthodox decision to add Bitcoin to its balance sheet in early 2021, it was believed that other major companies, such as Facebook or Apple, would follow suit. However, the cryptocurrency’s corporate adoption went virtually nowhere. With Tesla jumping ship, it is safe to say that other big names are highly unlikely to make Bitcoin part of their corporate treasury.
Some Bitcoin enthusiasts, however, saw a silver lining. Since Tesla’s cryptocurrency holdings have been dramatically reduced, the company’s extremely volatile CEO will not be able to easily influence the price of the largest cryptocurrency.