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Bitcoin (Bitcoin) is running out at Tesla, even though its CEO predicts US inflation has already peaked.
talk in tesla 2022 Annual General Meeting of Shareholders On August 5th, Elon Musk predicted that the upcoming US recession would be only “mild to moderate”.
since recently sell almost all With $1.5 billion in BTC holdings, Tesla is witnessing the emergence of economic conditions exactly where risky assets thrive.
In a Q&A session at the annual meeting, Musk revealed that commodity prices for Tesla parts have already gotten cheaper over the past six months, not higher.
Commodities are trending lower, suggesting inflation is already at its highest level, he said.
We have some insight into where prices are going over time. It’s not, but it’s more than half the price.It’s been trending down in six months,” he said.
“While this could clearly change, the trend is downward, suggesting inflation has passed its peak.”
A recovery from an inflationary period in which commodities headed downhill provides fertile ground for a recovery in risky assets, including cryptocurrencies. In theory, this comes as lower inflation means less tightening by the Federal Reserve, providing favorable conditions for risk-on investing.
The trend could be ironic for Tesla if power returns to the market and cryptocurrencies outperform. just $64 million – last month.
At that time, Musk Added BTC could return to the company’s balance sheet at a later date and the decision was not a comment on Bitcoin itself.
On the other hand, the annual meeting offered more optimistic macro forecasts, including a “relatively mild” US recession likely to last about 18 months. Mr. Musk added that inflation will “quickly come down.”
The irony of Musk’s comment is not lost Crypto commentators and others are already betting on a stock recovery to stay here.
Related: Bitcoin Price: Weekend Volatility Expected to Hold $22,000 Levels
Among them was Fundstrat Global Advisors, which noted that the market hit a historic bottom this week, six months before the Fed stopped tightening with a major rate hike.
As the firm predicted, the S&P 500 could rise 4,800 points in the second half of 2022. This is a boon for the cryptocurrency market, which remains strongly correlated with general equity movements.
This is important to keep in mind
– The market knows interest rates are rising
– “Shock” hurts the marketToday’s work report is not a “shock”
Get “First Word” with https://t.co/Vsy6WwaIxa @fs_insight https://t.co/HtuTCJANTO
Thomas (Tom) Lee (not drummer) FSInsight (@fundstrat) August 5, 2022
as Cointelegraph reportfurther insight into Bitcoin’s potential comeback came this week from the world’s largest asset manager. brought cryptocurrency exposure to
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.
