Bitcoin, Cryptocurrencies Steady After the Monday Surge

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3rd Party Analysis 27 Jul 2021

Key Takeaways

  • Bitcoin and the crypto market keep steady on Tuesday after a strong Monday rally
  • Tesla’s earnings report shows the company posted $23m impairment on bitcoin position

Cryptocurrencies Steady

Bitcoin and other cryptocurrencies appear to have put the recent rally on hold today. The largest digital currency is now trading at $37,200, lower by about 1% on the day. Bitcoin dipped earlier today to a session low of $36,300. However, traders and investors were quick to scoop up the digital token and lifted the price near its opening levels.

On a similar note, the second most valuable cryptocurrency, ether, is floating essentially flat on the day. Currently, ether’s price stands at $2,220 per token, lower by roughly 2% today.

Sideways trading on Tuesday came after a strong upside wave elevated all major cryptos to weekly highs. The price of bitcoin on Monday reached a high of $40,500, a 17% daily increase to a six-week top. Nevertheless, the flagship crypto couldn’t hold onto the gains and the price closed the day at $37,690 per coin.

Tesla Sees $23m Impairment Charge

Bitcoin’s jump on Monday was an extension to gains from the previous days. While there was largely a lack of good news surrounding the crypto market for the past couple of months, a flurry of positive developments swept across the nascent industry a week ago. Bullish comments by Elon Musk that SpaceX owned bitcoin and Tesla could accept it again improved the market sentiment.

Moreover, Amazon’s job posting that said the company was seeking a Digital Currency and Blockchain expert sparked speculation Amazon might be venturing into bitcoin and the cryptocurrency market.

After the recent rally, the price of bitcoin is still about 40% below its all-time high of $64,800 set in mid-April. Crypto proponents remain confident the asset will recover from the slump due to the growing acceptance by mainstream corporations and institutional investors.

In corporate news, Tesla’s bitcoin bet returned a $23m impairment charge on the company’s bitcoin holdings. That became clear from the second-quarter earnings report by the EV maker. In February, Tesla acquired bitcoin worth $1.5bn, of which it sold about 10% in the first quarter. The electric-car company reported book value of its bitcoin stood at $1.31bn in the quarter ended June, down from $1.33bn in the previous quarter.

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