Quantity Bitcoin that Tesla is holding holdings are now few, even as the company's CEO predicts inflation in the United States has peaked.
Musk on costs: 'The trend is down'
After selling almost all of the $1.5 billion BTC Recently held, Tesla is seeing the emergence of an economic landscape in which risky assets thrive.
During a Q&A session at the Annual Meeting, Musk revealed that the price of Tesla's components for 6 months is gradually getting cheaper, instead of more expensive as before.
According to him, commodity prices tend to decrease, showing that inflation has reached the highest level.
“We have some insight into where prices are heading over time, and what's interesting we're seeing right now is that most parts prices are trending down for 6 months, though not all. but just over half.
This is clearly subject to change, but the trend is down, suggesting that we are past the peak of inflation.”
The post-inflation recovery with commodity prices plunging provides fertile ground for the recovery of risky assets, including cryptocurrency. Theoretically, this is due to lower inflation, which means less tightening by the US Federal Reserve, facilitating riskier investments.
If strength returns to the market and cryptocurrency perform better, this trend will be a very painful "capital" for Tesla because the company has already sold most of the volume BTC its profits last month, with a profit of just $64 million.
At the time, Musk added that BTC may return to the company's balance sheet at a later date.
The annual meeting made even more optimistic projections about the macro situation, including that a potential "relatively mild" US recession is and will last about 18 months. Inflation will "fall rapidly," Musk added.
OLDrace get a raise higher in the second half of 2022
Musk's sarcastic comments did not sway crypto commentators and other voices that have bet on the stock's resilience.
Among them was Fundstrat Global Advisors, which noted last week that markets had found a historic half-year low before the Fed stopped tightening through major rate hikes.
As a result, the company predicts the second half of 2022 could see the S&P 500 climb to 4,800 points – beneficial for the crypto market as it remains highly correlated with overall equity market moves. Analyst Thomas (Tom) Lee tweeted:
This is important to keep in mind— Thomas (Tom) Lee (not the drummer) FSInsight (@fundstrat) August 5, 2022
- markets know rates are going up
- it's the “shock” that hurts markets
Today's job report is not a “shock”
Get the “first word” at https://t.co/Vsy6WwaIxa @fs_insight https://t.co/HtuTCJANtO
“It's important to keep in mind: the market knows interest rates are rising, it's a 'shock' that hurts the market. The jobs report on August 5 is not shocking.”
On the other hand, this week, the world's largest asset manager provided a potential return to Bitcoin. BlackRock, with over $9 trillion in assets, is partnering with the exchange Coinbase in the United States to bring crypto to customers.