This week in the world of cryptocurrency was a mixed bag. While Tesla Inc. reported significant paper losses on its Bitcoin holdings, the U.S. Senate Committee took a step forward in establishing federal regulations for digital assets.
Meanwhile, Bitcoin’s price took a hit, and analysts predict further downside. Let’s dive into the details.
Tesla’s Bitcoin Woes
Despite not selling any Bitcoin in Q4, Tesla Inc. reported substantial paper losses. The company’s earnings report revealed that it held $1.008 billion in digital assets as of Dec. 31, marking a 23% decrease from the previous quarter.
US Moves Closer To ‘Crypto Capital’
The U.S. Senate Committee on Agriculture, Nutrition, and Forestry voted to advance cryptocurrency market structure legislation. This move, seen as a crucial step towards establishing federal regulations for digital assets, has been applauded by industry leaders.
Bitcoin’s Downward Trend
Bitcoin saw an 8% decrease over the week. Crypto analyst Benjamin Cowen suggests that this downward trend is not due to a broken long-term thesis, but rather cycle timing, tightening liquidity, and repeating historical patterns.
Bitcoin ETF Buyers Underwater
Bitcoin ETF holders are now underwater, with the average purchase price at $90,200 while BTC trades at $84,000, according to Bianco Research’s Jim Bianco. The average Bitcoin ETF buyer since January 2024 is down roughly $5,000, or about 7% underwater.
El Salvador Buys The Dip
El Salvador doubled down on its unique strategy of building reserves in both Bitcoin and gold. The Central Reserve Bank of El Salvador purchased 9,298 ounces of gold worth $50 million, boosting total reserves to 67,403 ounces valued at $360 million.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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