On the 8th, after the purchase of Tesla Bitcoin was announced
Bitcoin price soared by 23%
Tesla “Considering Virtual Box Payments”
Elon Musk, CEO of Tesla (Photo = REUTERS)
Tesla, an electric car company led by Elon Musk, revealed that it had bought $1.5 billion (about 1,6692 billion won) worth of bitcoin, revealing that a short (short selling) position of over 1.2 trillion won in one day was liquidated.
According to the virtual asset (cryptocurrency) statistics website bybt, the size of the bitcoin short position liquidated from major futures exchanges for 24 hours immediately after Tesla’s purchase of bitcoin was announced on the 8th was $1.1 billion (about 1,2154 trillion). KRW billion) amounted.
Tesla says it holds bitcoin and allows payment ‘Short squeeze’ triggered
According to Tesla’s 2020 annual report submitted by Tesla to the Securities and Exchange Commission (SEC) earlier this year, Tesla revised its investment policy from January this year, stipulating that investment in digital assets (virtual assets), gold, and other assets is possible. .
The annual report reported that Tesla invested 7.8% of the $19 billion (approximately 21 trillion won) cash and cash assets in its corporate account, or $1.5 billion (approximately 1,6692 billion won), in bitcoin. Said there is. It also said that it expects to accept Bitcoin as a payment method for its products.
The bitcoin market price, which had stayed at $39,000 (about 43 million won) on the 8th, when the news was delivered, reached $48,142 (about 53.24 million won) in half a day, soaring more than 23%.
As the bitcoin market surged due to the good news from Tesla, the positions of short-position holders were largely liquidated. It is interpreted that this has occurred.
It is known that the size of the Bitcoin short position liquidated from major virtual asset futures exchanges during the day reached 1.1 billion dollars (about 1.2154 billion won).
Elon Musk, short selling forces and tough bad guys… Does it continue in the virtual asset market?
With this incident, the CEO of Musk has emerged as a’Father Musk’ by virtual asset investors, while a’underworld’ for short-selling investors. This is because the market price of virtual assets such as Bitcoin and Dogecoin soared every time Musk made a move related to virtual assets, which inflicted enormous losses to investors in short selling.
On the 29th of last month, when Musk added the hashtag’bitcoin’ to his Twitter account profile, the bitcoin price soared nearly 16%. At that time, a bitcoin short position of about $387 million (about 4324 billion won) was liquidated on major Bitcoin futures exchanges.
Musk’s “short selling hate” is well known. In 2018, when Tesla became a popular short-selling item due to business difficulties, he announced a plan to delist and induce stock prices to rise, causing a huge loss to short-selling forces. Accordingly, Musk’s CEO was accused of manipulating the stock price from the US Securities and Exchange Commission (SEC), and was fined 20 million dollars (about 22.3 billion won).
Reporter Kim San-ha, Hankyung.com [email protected]
Article reports and press releases [email protected]