Bitcoin has seen a significant pullback in its price over the past few days, leaving investors wondering if now is the time to buy the dip. Bitcoin is trading within a narrow range of $22,700 to $23,850, and a breakout will determine future price action in the market.
In this article, we will explore what could be causing this pullback and whether or not it is a good time to invest in Bitcoin.
Tesla’s $140 Million Bitcoin Loss and What You Need to Know About It
Tesla revealed them SEC Filings It was Monday that they experienced a financial loss due to the amount of Bitcoin – which totaled more than $140 million. In 2022, the electric car company took a $204 million hit in terms of impairment charges. However, they also managed to earn $64 million by converting bitcoins.
In December 2022, Tesla reported a $204 million impairment loss due to changes in the value of its bitcoin holdings. In addition, they experienced a profit of $64 million on the conversion of Bitcoin to fiat currency. This was detailed in their filing document.
An impairment charge is when the value of a particular asset decreases or is lost entirely. This can be due to unexpected changes in the economy, such as what happened to the crypto market when Terra Luna failed in May 2022.
According to Tesla’s latest SEC disclosure, their Bitcoin holdings experienced a $43 million loss in the last four months of 2022. This followed the release of their quarterly earnings report, which showed no evidence of any bitcoin transactions.
Tesla recorded $101 million in impairment losses on digital assets in 2021, according to an SEC filing. In the same year, they also realized a profit of $128 million from selling bitcoins. This is almost double compared to the previous year.
As of October 2022, Tesla noted to its investors that it held $218 million in bitcoins, which at the time was about $936 million, despite selling 75% of it in July.
The latest earnings report and SEC filing did not list any digital assets other than Bitcoin. However, rumors suggest that the company holds Dogecoin as they accept it as payment and CEO Elon Musk has publicly shown his support for it.
Since Tesla is still holding Bitcoin, this is driving investor confidence and could keep the BTC price supported.
German banking giant to offer bitcoin and crypto services
Decabank, a German financial institution with more than a century of experience and $428 billion in assets under its management, has signed an agreement. Metaco to begin providing digital assets For corporate clients.
According to a press release issued on January 31, DekaBank will use Metaco’s Harmonize platform for operations such as custody and orchestration. DekaBank will be able to manage their digital asset operations with the help of Metaco’s custody platform, which is an important portal for them.
After a detailed selection process and proof of concept, the bank went ahead with the partnership. The process was extensive to ensure they made a fair decision.
DekaBank, a German banking and financial services provider, is partnering with Metaco, a Swiss-based firm focused on cryptocurrency solutions. This is an industry endorsement that will help DekaBank expand its range of products to include crypto-related services for its institutional clients.
Institutional investors such as pension funds must follow strict regulatory guidelines that restrict their direct investment in cryptocurrencies such as Bitcoin. This is different from retail clients who have more flexibility in investment choices.
Currently, the price of Bitcoin is $23,158 and has increased by more than 1% in the last 24 hours. Its market volume is estimated at $22 billion while its market cap stands at an impressive $445 billion and ranks first in CoinMarketCap’s ranking.
The BTC/USD exchange rate is facing difficulty in crossing the $24,000 barrier on the 4-hour chart, and has since fallen to assess the $23,000 support level.
If the price of Bitcoin falls below its current level, it may sink to $22,600 or $22,350. $23,000 support is formed based on the 50-day moving average of the 4-hour timeframe. Breaking this price level could see a bullish reversal in the BTC/USD pair.
It is profitable to buy positions above $23,000 with a target price of $23,550 or $24,000. On the other hand, if the support area is broken at $23,000 then selling the position may be a good option.
Buy BTC now
CryptoNews recently put together a list of the most likely cryptocurrencies to succeed in 2023. If you are willing to invest, there are many other great investments that can give you good returns if researched properly.
Crypto investors and traders keep close tabs on altcoins and upcoming ICOs in the digital asset space to ensure they don’t miss any promising trends or potential investment opportunities.
Disclaimer: The Industry Talk section contains insights by crypto industry players and is not part of the editorial content of Cryptonews.com.