Bitcoin Slides to $66K, Ether Slides 5%, Tesla Holds Its Bitcoin, Reveals Q3 Financials Amid Stock Dip After Cybercab Reveal: Oct 24

At 8:00 AM UTC+8, Bitcoin  was priced at $66,665, showing a 1.12% drop, while Ethereum stood at $2,524, down by 3.73%. The market's 24-hour long/short ratio in the futures market was almost balanced at 49.5% long versus 50.5% short positions. The Fear and Greed Index, which measures market sentiment, was at 69 yesterday, indicating a "Greed" level, though slightly down from 71 recorded 24 hours earlier. The crypto market remains in Greed territory today, with the Crypto Fear & Greed Index slightly decreasing from 70 to 69. Despite recent fluctuations, the overall market leans towards greed.

• The crypto market saw a dip, with Bitcoin briefly falling to $66,000 and Ethereum dropping 5%, while Solana held steady.

• Tesla revealed it continues to hold $184 million in Bitcoin, showing its long-term commitment to the asset despite market volatility. 

• Investor sentiment remains cautious due to global uncertainties and the upcoming U.S. election, adding to market hesitancy.

Crypto Fear & Greed Index | Source: Alternative.me 

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BTC/USDT price chart | Source: KuCoin

Cryptocurrencies experienced a selloff in parallel with traditional financial markets on Wednesday. Bitcoin saw a decline of 2.3%, falling to $66,000 before recovering above $67,000, while Ethereum took a harder hit, dropping 5.3% to below $2,490. The broader crypto market, represented by the CoinDesk 20 index—tracking the top 20 cryptocurrencies by market cap—fell by 2.6%. Chainlink suffered the worst losses, slumping 7.6%, while Internet Computer managed to rise 1%, the only token to defy the downtrend. This selloff, occurring alongside traditional market downturns, highlights investor hesitancy amidst current global uncertainties.

Solana Outshines Ethereum, Reignites Debate on Blockchain Roadmaps

SOL/USDT price chart | Source: KuCoin 

One of the standout performances came from Solana, which held steady amidst the market declines. The SOL/ETH trading pair surged 6.3%, setting a new all-time high, while ETH/BTC hit its lowest point since April 2021. This strong showing from Solana has reignited debates around Ethereum's roadmap. According to Brian Rudick, director of research at GSR, Ethereum's underperformance must be analyzed in the broader context. He pointed out that the recent success of spot Bitcoin ETFs and the revival of Solana following the FTX collapse were unique events that helped BTC and SOL significantly outperform ETH. Rudick emphasized that, discounting the FTX collapse, Ethereum's performance since the 2021 crypto peak has actually been on par with Solana’s, suggesting that the current sentiment might be skewed by recent developments rather than longer-term trends.

Adding to the bearish sentiment is the uncertainty surrounding the upcoming U.S. presidential election. Joe Edwards, head of research at Enigma Securities, noted that even with crypto-friendly Donald Trump leading in betting markets, and Vice President Kamala Harris displaying a less antagonistic stance towards crypto compared to the current administration, markets are struggling to gain momentum. This lack of direction is likely tied to hesitancy around the political outlook and broader macroeconomic conditions. Investors are unwilling to make bold moves before seeing how the election unfolds, keeping upward momentum in check. With different drivers at play for each major asset, the near future of the crypto landscape appears uncertain, and traders will need to navigate these waters carefully in the weeks ahead.

Read More: Polymarket Hits Record $533M in Volume Amid U.S. Election Hype and Potential Token Launch

Tesla Retains Bitcoin Holdings for the Fifth Straight Quarter. Tesla's Q3 2024 earnings report revealed that the company held onto all its digital assets, including $184 million in Bitcoin, for the fifth consecutive quarter. This consistency in Bitcoin holdings highlights Tesla's approach to cryptocurrency as a strategic long-term asset.

In Q3, Tesla's revenue was $25.18 billion, slightly down from Q2's $25.5 billion, but net income showed a healthy increase, reaching $2.18 billion, up from $1.5 billion in the previous quarter. The continued holding of Bitcoin by Tesla and other public companies is closely monitored by investors, serving as an indicator of institutional interest in the crypto space and potential market impacts from selling pressures.

Source: Tesla Balance Sheet Q3

Arkham Intelligence Reports Wallet Movements, No BTC Sold

Speculation about Tesla's Bitcoin wallet activity spiked when Arkham Intelligence reported a transfer from wallets believed to belong to the company. According to Arkham, Tesla still controls around 11,509 BTC, worth roughly $750.7 million. This finding was confirmed by Tesla's recent financial disclosures, confirming no crypto sales since 2022, despite rumors of asset movement. Tesla's firm commitment to Bitcoin reflects their confidence in its value as a digital asset. Despite investor skepticism following the launch of Tesla's self-driving Cybercab, the company's commitment to holding its Bitcoin remains unwavering. The decision by Tesla to retain its Bitcoin holdings is closely observed by investors and the broader market. Public companies holding large amounts of digital assets are often seen as indicators of institutional confidence in the crypto space. Tesla's consistency here reflects continued interest from significant players in the industry, which could impact market sentiment and the broader adoption of Bitcoin.

Tesla’s ongoing commitment to its Bitcoin holdings, alongside its mixed revenue and profit performance, underscores its strategic perspective on cryptocurrency as a long-term asset. Investors closely watch moves like this from public companies to gauge broader institutional interest in crypto. As Tesla stands firm, it signals confidence in Bitcoin's role in the evolving financial landscape. Cryptocurrencies experienced a selloff in parallel with traditional financial markets on Wednesday. Adding to the bearish sentiment is the uncertainty surrounding the upcoming U.S. presidential election. With different drivers at play for each major asset, the near future of the crypto landscape appears uncertain, and traders will need to navigate these waters carefully in the weeks ahead.

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