Tesla CEO Elon Musk said his company’s decision to sell most of its bitcoin holdings should not be taken as a judgment on the major cryptocurrency.

As we previously mentioned on Bitcoin Arabs, the leading electronic car maker sold $936 million worth of Bitcoin in the second quarter of 2022.

Musk explained that Tesla had to liquidate its holdings because the company was concerned about overall liquidity due to the shutdown in China.

The billionaire also said that the company is open to increasing its bitcoin holdings in the future.

Earlier, Elon Musk criticized Bitcoin while presenting the earnings report, claiming that Bitcoin does not contribute to an environmentally sustainable future.

Read:Positive sentiment jumps crypto derivatives trading volume to $3.12 trillion

His statement at the time was:

Bitcoin is a sideshow sideshow.

We don’t think about it much.

Last May, Tesla stopped accepting bitcoin due to climate concerns, causing a major correction in the market.

Then the price of the world’s largest cryptocurrency dropped to $22,650 after the Tesla U-turn.

At press time, the largest cryptocurrency is trading below the $23,000 level, failing to regain momentum.

Bitcoin is still down almost 48% from its record peak.

The cryptocurrency’s decline is primarily related to the Federal Reserve’s attempts to tame inflation.

The central bank is expected to announce another rate hike later this month.

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During Tesla’s second quarter report, he told Musk that he expects inflation to drop by the end of the year.

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