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After failing to gain a foothold above $60000, the first cryptocurrency began to decline. The primary driver was data on a sharp rise in inflation in the US. A new announcement by Elon Musk led to a precipitous drop.
BTC
So what did Tesla’s founder say? That the company will not accept bitcoins as payment for cars. Why not? Bitcoin mining consumes too much electricity. Which means bitcoin mining affects the environment. When the developers solve this problem, bitcoin will be added as payment again.
From the outside, this may seem like the height of cynicism. Didn’t Ilon Musk know 2 months ago how much electricity miners were wasting? Of course he knew perfectly well. Then what’s the question?
We think the whole thing is simply that no one wanted to buy Tesla cars paid in bitcoin. Or rather, some buyers did, but they just couldn’t pass the CUS. Can a resident of Nigeria pay with the first cryptocurrency for a Tesla? Yes, he can. But the company won’t be able to accept such a payment because it could be accused by US regulators of helping with money laundering. And U.S. citizens who have official jobs and official incomes on which taxes have been paid can buy a car without BTC.
This is the tip of the iceberg. And in reality it appears to be a huge market manipulation. If this had happened in the stock market, Elon Musk would have already been in court and out on very high bail. However, crypto is not yet regulated at the proper level, so the Tesla CEO’s statement goes completely unpunished.
What’s in it for traders?
Traders got increased volatility. And this is already a good thing. No volatility, no earnings. And investors, who have long been waiting for the drawdown, should reflect on whether it is the right time to take a position. I am talking about long-term investments with a horizon of more than 1 year.
08.00 UK Consumer Price Index for April
20.00 US Federal Open Market Committee meeting minutes
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