Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Tesla’s bitcoin buys both ‘friend and foe’ when stocks enter the bear market

Tesla’s bitcoin buys both ‘friend and foe’ when stocks enter the bear market



Tesla shares have fallen in a bear market, down over 20% from the most recent high, and some analysts suggest the company’s ties to bitcoin are to blame as the currency strikes after more cautious comments from US Treasury Secretary Yellen.

Ticker Security Last Change Change %
TSLA TESLA INC. 698.84 -1
5.66
-2.19%

The stock, which has fallen about 21% from the closing high of $ 883.09 on January 26, has backtracked along with the digital currency. As of Tuesday, Bitcoin has fallen by approx. 17% to $ 48,170 after hitting its full-time high of $ 58,332, as tracked by Coindesk.

ELON MUSK EXPLAINS TESLAS BITCOIN PURCHASE OF $ 1.5 BILLION

Regards: Dow Jones Market Data Group

The electric vehicle manufacturer’s investment of DKK 1.5 billion Dollars in the currency to spread its cash holdings, as described in an application to the Securities and Exchange Commission last month, can be a double-edged sword.

TESLA buys $ 1.5 billion. Bitcoin will start accepting cars

“Investors are starting to tie Bitcoin and Tesla in the hip. While Tesla on paper earned approx. 1 billion Dollar on Bitcoin for a month that exceeded all its EV profits from 2020, the recent 48-hour sale in Bitcoin and increased volatility have led some investors to the end of this name in the short term, ”wrote analyst Dan Ives from Wedbush, who also noted , that he believes the move was “strategic in the long run.” Ives assesses the stock to hold, but sees further gains. “We maintain our $ 950 price target and $ 1,250 bull case,” he added.

The volatility of bitcoin this week also came as Yellen repeated cautious comments when asked about the future of a digital currency.

“Bitcoin, and I have said it before – is widely used as a transaction mechanism, to the extent that it is used. I fear that it is often for illegal financing. It is an extremely inefficient way of conducting transactions. And the amount of energy , consumed to process these transactions is staggering.But it is a highly speculative asset and you know I think people need to care.It can be extremely volatile and I worry about potential losses that investors in it like said Yellen during an interview on the New York Times DealBook DC policy project on Monday.

BITCOIN’S MARKET VALUE TOPS $ 1 trillion for the first time

Yellen’s remarks followed a clarification from Tesla CEO Elon Musk himself last week about what lay behind his company’s share in the digital asset.

“When fiat currency has negative real interest, only a fool would not look elsewhere,” Musk tweeted last week.


Source link