{"id":6247,"date":"2022-08-08T08:36:46","date_gmt":"2022-08-08T08:36:46","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=6247"},"modified":"2022-08-08T08:36:46","modified_gmt":"2022-08-08T08:36:46","slug":"us-past-peak-inflation-after-tesla-sells-90-of-bitcoin","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=6247","title":{"rendered":"US \u2019past peak inflation\u2019 after Tesla sells 90% of Bitcoin"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) is in short supply at Tesla, even as its CEO predicts that United States inflation has already peaked.<\/p>\n<p>Speaking at Tesla\u2019s 2022 Annual Meeting of Stockholders\u00a0on Aug. 5, Elon Musk predicted that an upcoming United States recession would only be \u201cmild to moderate.\u201d<\/p>\n<h2>Musk on costs: \u201cThe trend is down\u201d<\/h2>\n<p>After recently selling almost all of its $1.5 billion in BTC holdings, Tesla is seeing the emergence of exactly the kind of economic landscape in which risk assets thrive.<\/p>\n<p>During a Q&amp;A session at the annual meeting, Musk revealed that six-month commodities pricing for Tesla parts is already getting cheaper, not more expensive. <\/p>\n<p>Commodities, he said, are trending down, providing a hint that inflation has already hit its highest levels. <\/p>\n<p>\u201cWe sort of have some insight into where prices are headed over time, and the interesting thing that we\u2019re seeing now is that most of our commodities, most of the things that go into a Tesla \u2014 not all, more than half the prices \u2014 are trending down in six months from now,\u201d Musk said.<\/p>\n<p>\u201cThis could change, obviously, but the trend is down, which suggests that we are past peak inflation.\u201d <\/p>\n<p>The recovery from an inflationary period with commodities heading downhill provides fertile ground for a recovery in risk assets, including crypto. Theoretically, this comes as a result of lower inflation meaning less tightening by the U.S. Federal Reserve, providing favorable conditions for risk-on investments.<\/p>\n<p>Should strength return to markets and crypto outperforms, the trend will be an ironic one for Tesla, which divested itself of practically all its BTC exposure \u2014 at a profit of just $64 million \u2014 last month. <\/p>\n<p>At the time, Musk added that BTC could return to the firm\u2019s balance sheet at a later date, and that the decision was not a commentary on Bitcoin <em>per se<\/em>. <\/p>\n<p>The stockholder meeting, meanwhile, produced further optimistic predictions on macro, including a potential U.S. recession being \u201crelatively mild\u201d and lasting approximately eighteen months. Inflation, Musk added, will \u201cdrop rapidly.\u201d<\/p>\n<h2>A race higher in the second half of 2022<\/h2>\n<p>The irony of Musk\u2019s comments was not lost on crypto commentators, and other voices are already betting on a rebound in stocks being here to stay.<\/p>\n<p><em><strong>Related:\u00a0Bitcoin price: weekend volatility \u2018expected\u2019 with $22K level to hold<\/strong><\/em><\/p>\n<p>Among them is Fundstrat Global Advisors, which this week noted that markets have historically found a bottom half a year before the Fed stops tightening via key interest rate hikes.<\/p>\n<p>The second half of 2022, the firm thus predicted, could take the S&amp;P 500 to 4,800 points \u2014 a boon for crypto markets still heavily correlated with moves in equities in general.<\/p>\n<p lang=\"en\" dir=\"ltr\">This is important to keep in mind <\/p>\n<p>&#8211; markets know rates are going up<br \/>&#8211; it\u2019s the \u201cshock\u201d that hurts markets <\/p>\n<p>Today\u2019s job report is not a \u201cshock\u201d<\/p>\n<p>Get the \u201cfirst word\u201d at https:\/\/t.co\/Vsy6WwaIxa    @fs_insight https:\/\/t.co\/HtuTCJANtO<\/p>\n<p>\u2014 Thomas (Tom) Lee (not the drummer) FSInsight (@fundstrat) August 5, 2022<\/p>\n<p>As Cointelegraph reported, further insight into Bitcoin&#8217;s potential comeback came from the world&#8217;s largest asset manager this week. BlackRock, with over $9 trillion in assets, has partnered with U.S. exchange Coinbase to bring crypto exposure to clients.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/elon-musk-us-past-peak-inflation-after-tesla-sells-90-of-bitcoin\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) is in short supply at Tesla, even as its CEO predicts that United States inflation has already peaked. Speaking at Tesla\u2019s 2022 Annual Meeting of Stockholders\u00a0on Aug. 5, Elon Musk predicted that an upcoming United States recession would only be \u201cmild to moderate.\u201d Musk on costs: \u201cThe trend is down\u201d After recently selling [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6248,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-6247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6247"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6247\/revisions"}],"predecessor-version":[{"id":6249,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6247\/revisions\/6249"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/6248"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}