Claim BonusAs BTC Plummets to $19,000, Elon Musk’s Tesla Reports $440 Million Impairment Losses
The world’s largest cryptocurrency Bitcoin (BTC) has struggled to keep up with its recovery and has been trading under pressure at a price of $19,000. After the massive price crash in the BTC price this year, Elon Musk’s Tesla Inc (NASDAQ: TSLA) has been facing a $440 million write-down on its Bitcoin holdings.
Last year in February 2021, Tesla parked $1.5 billion of its reserve cash into Bitcoin. This created a major euphoria in the market with Bitcoin peaking at $69,000 in November 2021. Although Tesla sold some of its BTC last year, it continues to hold the rest.
With the Bitcoin (BTC) price plummeting more than 70% since the beginning of the year, Tesla is facing impairment losses to the tune of $440 million. Currently, the company’s Bitcoin investments have an estimated worth of $820 million. Three months ago, the company had recorded the value of its Bitcoin investments at $1.2 billion. This means, that in just three months, the company has seen its Bitcoin value holdings erode by 33%.
Apart from its investment, Tesla has also started accepting Bitcoin payments for a very brief period. However, it later decided to withdraw its decision citing environmental concerns with Bitcoin mining.
Tesla is not alone to park part of its cash reserves into Bitcoin. Other companies like MicroStrategy, Coinbase, and Block INc. have adopted this route. Business intelligence firm MicroStrategy continues to add further with its latest Bitcoin purchase last week.
Bitcoin (BTC) At A Critical Junction
As said, Bitcoin continues to trade under pressure around $19,100 levels. As per market analyst Ali Martinez:
Bitcoin Transaction history shows that $BTC needs to reclaim $19,500 as support as soon as possible to avoid a downswing to $16,350.
However, if Bitcoin (BTC) manages to register a sustained close above $19,600, we can see a further bullish price action forming up to $22,000. It will be interesting to see what the market has to offer for the new week.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- How Low Can Bitcoin Dip- Peter Brandt Predicts Possible BTC Bottom
- Strategy’s Michael Saylor, CEO Phong Le Assure More Bitcoin Buy, No Liquidations Until $8K
- Crypto Market Braces for Deeper Losses as BOJ Board Pushes for More Rate Hikes
- Crypto Prices Drop as U.S. Urges Citizens To Leave Iran
- Japan’s Metaplanet Pledges to Buy More Bitcoin Even as BTC Price Crashes to $60k
- Will Cardano Price Rise After CME ADA Futures Launch on Feb 9?
- Dogecoin, Shiba Inu, and Pepe Coin Price Prediction as Bitcoin Crashes Below $70K.
- BTC and XRP Price Prediction As Treasury Secretary Bessent Warns “US Won’t Bail Out Bitcoin”
- Ethereum Price Prediction As Vitalik Continues to Dump More ETH Amid Crypto Crash
- Why XRP Price Struggles With Recovery?
- Dogecoin Price Prediction After SpaceX Dogecoin-Funded Mission Launch in 2027
