Bitcoin (BTC), the world’s leading cryptocurrency, has failed to sustain its rally phase and is now selling at a price of $19,000. After a massive drop in the price of bitcoin this year, Elon Musk’s Tesla Inc (NASDAQ:TSLA) is suffering a $440 million depreciation on its bitcoin investment.
Tesla put $1.5 billion of its additional funds into bitcoin last year in February 2021. This caused financial chaos, with bitcoin topping $69,000 in November 2021. Despite Tesla liquidating some BTC last year, it still holds the majority. The organization valued its bitcoin investment at $1.2 billion three months ago. This indicates that the firm’s bitcoin investments have declined by 33% over the past three months.
Along with its investment, Tesla has also started trading bitcoin for a limited time. It eventually reversed its decision, claiming environmental issues with bitcoin mining.
Tesla isn’t the only company that has invested a portion of its extra cash in bitcoin. This strategy has been used by other firms such as Microstrategy, Coinbase and Block Inc.
Is bitcoin worth $16,350?
As mentioned earlier, bitcoin is under pressure at $19,100. According to market researcher Ali Martinez, the Bitcoin trading record shows that $BTC needs to reclaim $19,500 as support as soon as possible to prevent a fall to $16,350.
If Bitcoin (BTC) manages to close consistently above $19,600, we should expect additional bullish market activity up to $22,000. It will be interesting to see what’s in the market next week.