In the cryptocurrency space this past month, Tesla (NASDAQ:TSLA), one of the most prominent companies supporting bitcoin, sold a significant part of its stash of the digital asset.
Also in July, a new research report showed retail buyers are interested in beaten-down cryptocurrency stocks.
Below the Investing News Network (INN) offers a recap of what investors should know about the blockchain business and cryptocurrencies in the month of July.
Tesla sells nearly 75 percent of bitcoin holdings
Electric car manufacturer Tesla has sold nearly 75 percent part of its bitcoin stake.
The move came as a surprise to the market given the role CEO Elon Musk has played in the promotion of bitcoin as a mainstream currency option. The company invested US$1.5 billion in the cryptocurrency last year, although it sold 10 percent of that amount after two months.
“This should not be taken as some verdict on bitcoin,” Musk said in a recent call with analysts.
According to Bloomberg, the executive pointed instead to concerns about COVID-19 shutdowns in China, which he said are affecting his company’s liquidity.
The bitcoin sale added US$936 million in cash to Tesla’s balance sheet. In its report, Bloomberg indicates that the move represents a hawkish tactic from Musk during a downturn for the entire cryptocurrency market.
Retail investors lift cryptocurrency-related stocks
A new dataset from VandaTrack shows that there’s been a recent uptick in some of the most beaten-down public names in the cryptocurrency market thanks to retail investors.
“Retail traders are definitely surfacing here,” Ed Moya, senior market analyst at Oanda, told Bloomberg.
“Everyone expected one last major plunge for Bitcoin and now prices are recovering and risk appetite on Wall Street is somewhat improving.”
Over the course of 10 days in July, retail investors bought approximately US$1 billion worth of shares in the space. Some cryptocurrency-exposed names jumped by at least 50 percent as a result, although they are still seeing year-to-date downturns.
Around the INN homepage
- 3 Ways to Invest in Cryptocurrency Tax-Free Using ETFs: Cryptocurrency investments can prove difficult to manage. That’s where exchange-traded funds can come in and can help investors. This list shows some of the different options available to investors looking for exposure to this space.
From around the web
- In a new report, CoinDesk states that the difficulty of mining a bitcoin block fell by 5 percent in July, representing the third decrease in a row. Climate conditions in Texas have led some miners to turn off their machines, and with less competition the difficulty of mining for the coins decreases.
- July was the best month for bitcoin in 2022, according to Bloomberg, with a 27 percent increase in value for the digital asset. In fact, July was the best month for bitcoin since October of last year.
- Investors got a significant update about the progress of the cryptocurrency market by way of a new joint report from Bitget, Boston Consulting Group and Foresight Ventures. The report proposes that the adoption of cryptocurrencies will continue, and states that they may be used as a “potential hedge against inflation.”
One last thought…
The report from Bitget, Boston Consulting Group and Foresight Ventures also offers a point of interest for investors when it comes to how to evaluate growth within the market.
“Crypto exchanges … cannot easily monetize data or technology,” the researchers said, explaining that traditional growth measurements like revenue are tricky to apply in this market.
The researchers believe crypto operators could become serious financial players in the potential Web3 world.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
From Your Site Articles
Related Articles Around the Web
Image and article originally from investingnews.com. Read the original article here.