Crypto markets rose on Tuesday as Tesla's bitcoin holdings were almost entirely moved after a two-year hiatus.
According to Arkham Intelligence data, at around 21:30 UTC on October 15, an address associated with Tesla transferred BTC (11,509 coins) worth approximately US$765 million in batches to multiple unknown wallets, which appears to be the company's entire remaining Bitcoin reserves.
Bitpush previously reported that in the first quarter of 2021, after Bitcoin rose to a high of nearly $62,000, Tesla sold $272 million worth of Bitcoin and made a profit of $128 million. The company also sold $936 million worth of Bitcoin in the second quarter of 2022, bringing in $64 million in profits.
The purpose of the latest transfers is unclear, with some analysts believing Tesla may simply be making strategic adjustments, while others believe the transfers could signal potential sales or the reintroduction of Bitcoin as a payment method for its electric vehicles.
According to BitcoinTreasuries data, Tesla is the fourth largest Bitcoin holder among US listed companies. The top three are software company MicroStrategy, Bitcoin mining company MARA Holdings and Riot Platforms.
According to Bitpush data, the price of Bitcoin fluctuated upward in early trading on Tuesday, soaring to a high of $67,960, the highest since July 29. It then quickly fell to $64,787, and climbed again to over $67,000 after lunch. The next key resistance level is $68,000. At press time, the trading price of Bitcoin was $66,760, up 0.68% in 24 hours.
Most of the top 200 altcoins by market cap were in the red on the day. Storj (STORJ) led the gains, up 22.1%, Scroll (SCR) up 13.7%, and Metis (METIS) up 9.9%. Saga (SAGA) fell the most, down 11.5%, Mog Coin (MOG) down 10.7%, and Sui (SUI) down 9.4%. The overall cryptocurrency market cap is currently $2.3 trillion, with Bitcoin accounting for 57.5%.
In the U.S. stock market, the S&P, Dow Jones and Nasdaq indices were in the red for most of the trading day, closing down 0.76%, 0.75% and 1.01% respectively.
Bitcoin open interest at record levels, driven by institutional investors
Data shows that Bitcoin's open interest is at a record level, and Polymarket's market sentiment believes that Bitcoin has a 64% chance of hitting a new high in 2024, an increase of 9% from last week. Analysts at Secure Digital Markets said this was mainly driven by institutional investors, and the open interest weighted funding rate is currently at a multi-month high, reflecting a bullish outlook in the short to medium term.
In addition, spot Bitcoin ETFs received a total of US$810 million in inflows in two trading days, with Fidelity and ARK receiving larger inflows. At the same time, Ethereum ETH attracted US$17 million in inflows yesterday, mainly contributed by BlackRock's products.
JPMorgan analysts are bullish
The bullish momentum for Bitcoin was highlighted in the Alternative Investments Outlook and Strategy report published by JPMorgan analysts, led by Managing Director Nikolaos Panigirtzoglou.
“In summary, we are bullish on digital assets in 2025,” the analysts said, noting several factors driving their outlook, including the emergence of the “flush trade,” a trend in which investors turn to alternative asset classes like gold and Bitcoin as a hedge against economic instability.
Analysts note that as geopolitical tensions rise and the upcoming U.S. election dominates headlines, speculative institutional investors such as hedge funds may view gold and Bitcoin as beneficiaries of this trend.
With opinion polls showing a Trump victory increasingly likely, analysts say the devaluation trade could strengthen as tariffs and expansionary fiscal policy, also known as debt devaluation, tied to geopolitical tensions could further weaken the dollar.
Other positives include traditional wealth advisors such as Morgan Stanley being allowed to recommend spot Bitcoin ETFs to clients, Mt. Gox and Genesis creditors halting large-scale liquidations of Bitcoin, and the upcoming cash payout from FTX’s bankruptcy, which analysts say could be reinvested in the market.
Analysts also highlight that the market capitalization of stablecoins is approaching its previous peak of around $180 billion (the level before the Terra/Luna crash in 2022). Stablecoin legislation in the United States is likely to appear sometime in 2025, and it is expected that once it is finally implemented, adoption will increase, making stablecoins more mainstream.
John Glover, chief investment officer of Ledn, analyzed on the X platform that the price of Bitcoin "has broken through the parallel channel (flag pattern, blue line below)".
John Glover said: "Usually, to be safe, I look for two consecutive days of closing prices above or below the trendline breakout point, so while it's not time to go all out, this breakout could signal the next move up and retest the high of $73,000. Be patient and wait for confirmation of the closing price because we have to stay above $65,000, but from a technical perspective, BTC's trend looks positive."
