“Easy come, easy go” was the July 20 story. The day started on a positive note with Bitcoin (BTC) climbing above $24,300, to end the official trading day in the red after less-than-stellar second-quarter earnings news showed Tesla has sold 75% of its Bitcoin and Minecraft creator Mojang Studios turned the tide by deciding to ban NFTs on its platform.
A potential source of the afternoon slowdown can be traced to Tesla’s second-quarter earnings data, which showed the electric car company sold 75% of its Bitcoin holdings to add $963 million in cash to its balance sheet.
Thus, not only the forced sale of 3AC, $LUNA & US$but also Voyager, BlockFi and Celsius drove the markets down.
On top of that, Tesla sold 75% of its #Bitcoins cash purchases.
This is what caused the accident.
This is also why we are close to the bottom.
— Michael van de Poppe (@CryptoMichNL) July 20, 2022
Shortly after the Tesla news broke, the price of Bitcoin fell from its daily high of $24,280 to $22,900, before stabilizing around $23,500.
Related: Bitcoin price hits $24,000, but analysts say on-chain data points to ‘inevitable’ pullback
Bullish trader estimates may have been premature
Today’s unexpected setback may also have helped to bring some market perspective to crypto traders who were ready to call the end of the bear market.
Many of you haven’t been through the early months of a bear market and it shows.
You get excited by dead cat bounces and bull traps, act like a quick pump is the end of the bear cycle.
Unfortunately, there is only one way to learn.
— Vlad “BTTCKVR.com” Costea ⚡️ (@TheVladCostea) July 19, 2022
While Bitcoin’s pullback so far has been relatively mild, several altcoins have seen steeper declines as recent price increases have created a nice opportunity for traders to make gains.
Ethereum’s layer 2 solution, Polygon, saw an 11.5% decline after a week in which the token’s value increased by 87%. Arweave (AR) saw its token price fall by 10.84% and Filecoin (THREAD) experienced a decline of 10.2%.
On the other hand, the only tokens in the top 100 that managed to hold positive gains for the day were Steem (STEEM) and Reef (REEF), which posted slight gains of 6.27% and 3.15%. , respectively.
The overall cryptocurrency market capitalization now stands at $1.035 trillion, and Bitcoin’s dominance rate is 42.7%.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.