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Gates: Bitcoin only for those who have more assets than Musk
The yield on the US 10-year bond is approaching the dividend yield of the S&P 500 index, which triggered a drop in some risky investments earlier this week, including bitcoin, where a few other factors are behind it.
Tesla shares have been losing significantly in recent days and have already moved around the record $ 900 by about 25 percent. Their exchange rate is after revealing that the company has invested 1.5 billion dollars in bitcoin, whether you like it or not, related to the price movement of the most important cryptocurrency, and some also link the fall of Tesla's shares to the WSB community on the Reddit online forum. shares as in the past. Despite the correction, Tesla's shares remain among the highest valued in the S&P 500 index, as they are traded at 163 times the expected profit for the next 12 months.
Technology stocks fell significantly on Monday, Tesla by almost nine percent. The Nasdaq index lost 2.5 percent.1.9 trillion US stimulus package is expected to not only stimulate the economy but also boost inflation, so government bond yields are rising markedly. In the ten-year period, it almost touched 1.4 percent, which is the highest since February last year and almost as much as the average dividend yield of American corporations (1.46 percent).
We are going to the sea ...
Money moves from so-called growth shares (these are companies with high revenue growth) to value shares (favorably valued companies with a low P / E ratio). There is also continued interest in sectors that will come to life again at the end of the epidemic. Shares of European travel agencies and airlines experienced good growth yesterday after ambitiously predicting better times in the UK. Tui boasted that the number of overnight bookings increased by 500 percent.
The value of oil highest since January last year
Oil prices remain around the 13-month peak, where they climbed due to a downturn in production in Texas. Severe winter conditions have, according to some estimates, reduced world production by 2 to 4 percent. In addition to the general expectation, there are also signs that the epidemic is calming down on the commodity markets (copper, aluminum ... are also irritating). The price of Brent was over $ 65 yesterday. In Slovenia, the price of fuel has risen by about 20 percent in the last six months, and those who run out of heating oil will have to pay around 950 euros for a 1,000-liter tank. Goldman Sachs expects Brent to reach $ 70 in the second quarter and $ 75 in the third.
Janet Yellen sharply over bitcoin
The wild growth in the cryptocurrency market has ended, at least temporarily. The correction has long been expected, but it was triggered by several factors. As early as Saturday, Elon Musk warned that he thought the price of bitcoin and ether was high. U.S. Treasury Secretary Janet Yellen was much sharper. According to her, bitcoin is extremely inefficient in conducting transactions, in addition, it is a highly speculative and volatile investment that can bring high losses. She noted its use for illegal activities. She also mentioned the impact on the environment, as a lot of electricity is needed (more than, say, Pakistan consumes) to mine new coins.
Bitcoin was worth $ 29,000 at the turn of 2021, and as early as $ 58,000 at some exchanges on Sunday. After as much as 100% growth in less than two months, it is logical that it also turned downwards, but the speed of the correction was quite surprising. On Monday, bitcoin fell $ 7,000 in an hour. The situation calmed down only yesterday in the middle of the day, and tonight it was already followed by a renewed growth of over 50 thousand dollars.
Gates advises everyone (except Bezos) to be careful.
In an interview with Bloomberg, Bill Gates advised against buying bitcoin: "My general opinion is that everyone who has less wealth than Musk (so everyone in this world except Jeff Bezos) should be careful." Gates has long been considered an opponent of bitcoins, in 2018 he argued that they should be “shortened”, i.e., sold short (which only gives a result if the exchange rate falls). Many people are glad they did not listen to him at the time, as bitcoin went from $ 10,000 to nearly $ 60,000 at the time.
In one hour, BTC fell by $ 7,000.
BTC was worth a record $ 58,300 on Sunday, and in two days of strong red (it quickly lost nearly $ 7,000 on Monday afternoon, the most extreme one-hour move in its history), it fell below $ 45,000 yesterday. For bitcoin, a completely normal correction, for now smaller than in January, which was 30% (from 42 to 28 thousand). The fact that one of the whales (those who own at least a thousand bitcoins) transferred as much as 28,000 bitcoins worth about $ 1.5 billion from their wallets to the cryptocurrency exchange was already a sign that the exchange rate could collapse. Whether he really sold them or not is not known, but he certainly hinted that this could happen.
The anger of Kraken stock market users.
Of course, bitcoin was followed by the remaining cryptocurrencies, at some point the market value of the entire crypto market collapsed by $ 260 billion in 24 hours. Ether, which broke the $ 2,000 mark for the first time over the weekend, underwent a serious correction: The Kraken stock exchange was already a real "flash-crash", as the price crashed by a good 60 percent, to $ 700. With the mass liquidations, the exchange was in trouble and out of reach for users for some time, and the lenders traders were particularly angry. They are said to have suffered significant losses and are even threatened with lawsuits. However, despite all the downturns, the crypto market also heard good news yesterday: Tether limited, a company that issues a stable cryptocurrency Tether (and watches over the Bitfinex exchange), negotiated with the New York Attorney General’s Office and paid a $ 18.5 million fine it did not have sufficient reserves to cover the tethra at an exchange rate of one dollar for each tether.
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