The crypto market and Bitcoin have lost momentum over the past 24 hours, after experiencing relief rallies. Tesla, a Tesla-led automaker led by Elon Musk, announced yesterday that 75% of its BTC holdings had been sold to convert them into fiat currencies.
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This speculation has fuelled fears that other large BTC-holders will sell their assets to the market. This speculation has dominated MicroStrategy, and Michael Saylor as its CEO.
Over the past week, Bitcoin’s third wealthiest address identified as 1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ, has transferred 29,200 BTC to exchange platforms. Crypto users believe this is MicroStrategy’s BTC address.
They speculate that the software company may have sent BTC to Coinbase. The address sent 132,800 BTC over the week to the platform. This is approximately what the Saylor-led business had.
Tesla Triggers a Bitcoin Selling Domino Effect
Jarvis Labs, a research company questioned the rumors claiming the address most likely belongs to a “top trader”. Since January 2019, the wallet has been steadily accumulating Bitcoin.
MicroStrategy and Saylor both disclosed that they purchased their first Bitcoin in 2020. If the software company is publicly traded in America, it must disclose its treasury strategy to avoid legal consequences.
Jarvis Labs emphasized the difficulty of labeling BTC addresses. They dismissed rumors by saying the following:
It is a delicate topic and extremely complicated to create wallet labels. They are often not confirmed by the party concerned. You should take this noise with a grain. Relax, he has not been selling yet, even if assumed it was Saylor’s MSTR wallet.
Saylor Responds to Rumours About Their Bitcoin Holdings
CEO at CryptoQuant Ki Young Ju claimed the rumors about the wallet unloading their Bitcoin into the market are “FUD”. According to the executive, transactions related to 1P5Z were part of an internal transfer.
Young Ju suggested that the BTC may have been sent to an unknown cold wallet or custodian, possibly owned by cryptocurrency exchange Gemini. Young Ju said:
For the record, “1FzW…” has closer ties to hot wallets like “1NYA…” and “bc1quq…” and these are not Coinbase or OKx. These hot wallets belong to Gemini. However, many on-chain providers of data mislabeled it. This tweet has more information.
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Replying to all these rumors and speculation, Saylor tweeted with two emojis representing “diamond hands”. In the past, the executive said their plans are to hold Bitcoin “forever” dismissing any idea of dumping their BTC.
💎🙌
— Michael Saylor⚡️ (@saylor) July 21, 2022