Main Takeaway: Market Rally Put On Hold Because Tesla Sold
The markets have been on a tear lately, rising over 10% and reaching the $1 trillion mark in the last week, but the party stopped after Tesla announced it sold 75% of its Bitcoin (worth $936 million) to cover much-needed cash. As a result, the crypto markets reversed course – and are now down 2%.
Key Stories: Tesla Sells BTC, Minecraft Bans NFTs
Following Tesla’s quarterly report showing it sold Bitcoin, the asset fell off a cliff immediately (see below). So apparently Elon Musk and Tesla do not have the diamond hands they claimed they had last year. The takeaway is this bad news comes on top of other reports of capitulation, so despite a bounce from June lows, traders have to stay vigilant for more potential downside.
Secondly, Minecraft shared a news post regarding upcoming changes to its game guidelines that include a ban on blockchain and NFT tech on game servers that are run independently and that block access to certain game features. That’s really the main reason they’re doing this so that NFTs and blockchain aren’t used to limit the game’s development and openness.