Bitcoin (BTC) Tesla is shortchanged, even as its CEO predicts that US inflation has already peaked.
Speaking at Tesla 2022 Annual Meeting of Stockholders where on August 5, Elon Musk predicted that the coming recession in the United States would be only “mild to moderate”.
Mask costs: “The trend has decreased”
After recently almost all are sold With a $1.5 billion BTC holding, Tesla is seeing the economic landscape in which risk assets thrive unfold.
During a question-and-answer session at the Annual Meeting, Musk announced that six-month commodity prices for Tesla parts are no longer going up, but down.
According to him, commodities are trending lower, indicating that inflation has already peaked.
“We have some information about where prices are going over time, and the interesting thing we’re seeing now is that a lot of our stuff, most — not all, but more than half — of the things that go into Tesla are trending down in prices over six months.”
“This is obviously subject to change, but the trend is down, indicating that we are past peak inflation.”
Commodities’ recovery from a period of bearish inflation creates fertile ground for a recovery in risk assets, including cryptocurrency. In theory, this is the result of lower inflation, meaning less tightening by the Federal Reserve, making conditions favorable for risky investments.
This trend will be an ironic trend for Tesla if power returns to the markets and outperforms cryptocurrency. a total of $64 million – last month.
Musk at that time he added BTC may return to the firm’s balance later and the decision is not a comment on Bitcoin arbitrarily.
The Annual Meeting, meanwhile, made further optimistic macro forecasts, including that the potential US recession would be “relatively moderate” and last around eighteen months. Musk added that inflation will “come down quickly.”
Higher competition in the second half of 2022
It was the irony of Musk’s comments not lost crypto commentators and other voices are already betting that the stock recovery is here to stay.
Related: Bitcoin price: weekend volatility ‘expected’ and held at $22K
Among them is Fundstrat Global Advisors, which this week saw markets hit historic lows half a year before the Fed stopped tightening by raising key interest rates.
Thus, the second half of 2022, the firm predicts, could take the S&P 500 up to 4,800 points – a boon for cryptocurrency markets that is still closely linked to the movement of stocks in general.
This is important to remember
– markets know that prices are rising
– is a “shock” that damages the marketsToday’s jobs report is not a “shock.”
Get it from “The First Word”. https://t.co/Vsy6WwaIxa @fs_insight https://t.co/HtuTCJANtO
— Thomas (Tom) Lee (not drummer) FSInsight (@fundstrat) August 5, 2022
Like Cointelegraph informed, more information on Bitcoin’s potential comeback came this week from the world’s largest asset manager. BlackRock, which has more than $9 trillion in assets, has partnered with US exchange Coinbase to increase cryptocurrency exposure to its clients.
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