Binance's Changpeng Zhao Labels Tesla's Bulk Bitcoin Sell-Off a 'Drop in the Ocean'

The crypto market did react to Tesla selling most of its BTC holdings last week.

By Shomik Sen Bhattacharjee | Updated: 25 July 2022 15:40 IST

Binance's Changpeng Zhao Labels Tesla's Bulk Bitcoin Sell-Off a 'Drop in the Ocean'

Photo Credit: Reuters

The Binance boss took Tesla offloading 75 percent of its Bitcoin holdings in a very light way

Highlights

CZ estimates that around $100 billion in BTC is traded every day
Tesla recently announced that it had sold 75 percent of its BTC holdings
Not everybody agreed with Changpeng Zhao's comments

Tesla recently announced its Q2 2022 earnings report, where it revealed that it had sold 75 percent of its Bitcoin holdings and while this was negative news for the market, Binance CEO Changpeng Zhao believes that Tesla's Bitcoin sell-off doesn't mean much for the asset claiming that its holdings were "a drop in the ocean." Zhao has estimated that up to $100 billion (roughly Rs. 8,00,148 crore) worth of Bitcoin gets traded every day, given that Tesla has sold less than $1 billion (roughly Rs 8,001 crore) worth of BTC makes the amount appear trivial in volume.

Tesla CEO Elon Musk dismissed crypto as a "sideshow" during a conference call, but he also clarified that the recent sale was not a "verdict" on Bitcoin. The entrepreneur did not rule out adding to his company's existing cryptocurrency position in the future despite his climate-related concerns.

Up to $100 billion of #btc get traded every day. Someone selling $1 billion is a drop in the ocean. https://t.co/jEY9dmLeb2
— CZ ???? Binance (@cz_binance) July 21, 2022

In a separate interview with Fox Business, Zhao mentions that people shouldn't read too deeply into Tesla CEO and crypto advocate Elon Musk cashing out of Bitcoin so heavily.

“He's a smart guy but it doesn't mean that he holds every valuable asset in the world. He probably doesn't hold many other company stocks, many other valuable cryptocurrencies, etc.

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Just because he buys and sells some Bitcoin doesn't mean that because he buys Bitcoin it got better, or because he sold Bitcoin it became worse.”

While several users agreed with CZ's words, Terra Research Forum's FatMan had a different opinion. He wrote it is hard to know without accounting for fake volume and wash trading on exchanges with zero fees. “$1b volume traded on an exchange is quite different from $1b in real USD outflows.”

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While it's hard to debate on this topic, Bitcoin dropped in price as the Tesla Bitcoin sell-off news surfaced. Bitcoin that had crossed the $24,000 (roughly Rs. 19.2 lakh) level dropped to $23,169 (roughly Rs. 18.5 lakh) as the news came out. The market was showing signs of recovery after months of price drops.

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