Elon Musk Says Tesla’s 90% Of Bitcoin Sell Might Be Past The Peak Of Inflation

Elon Musk
Elon Musk

If marketplaces already have bottomed and cryptocurrency starts to provide significant returns once more, the company can be caught off guard.

Even as Tesla’s CEO asserts that U.S. inflation has already peaked, Bitcoin (BTC) remains in short supply there.

Elon Musk projected that the future U.S. recession would only be “mild to moderate” while speaking at Tesla’s 2022 Annual Meeting of Shareholders on August 5.

Elon Musk Says Inflation Is Down: 

Tesla just sold 90% of its $1.5 billion worth of Bitcoin holdings, and as a result, it is now witnessing the formation of the kind of economic environment that risk assets thrive in.

Elon Musk stated that during a Conversation at the annual meeting, the six-month commodities cost for Tesla components is already falling, not rising.

He claimed that the downward trend in commodities is a sign that prices have already peaked.

A comeback in risk assets, including cryptocurrencies, is possible due to the end of an inflationary phase and the decline in commodity prices. Theoretically, this results from less tightness by the U.S. Federal Reserve due to reduced inflation, which creates favourable conditions for riskier investments.

The trend will be amusing for Tesla, which will rid itself of virtually all its BTC exposure last month at a gain of just $64 million, should momentum return to the market and cryptocurrency outperform.

The Second Half Of 2022 Can See A Higher Race: 

Cryptocurrency observers did not miss the irony of Elon Musk’s remarks, and other speakers are already placing their bets on a sustained stock market recovery.

One of them is Fundstrat Global Advisors, who stated this week that traditionally, markets find a bottom six months before the Fed stops tightening through significant interest rate increases.

According to the firm’s forecast, the S&P 500 might reach 4,800 points in the second half of 2022, which would be advantageous for the crypto markets, which are still strongly associated with movements in equities generally.