US has ‘passed peak inflation’ after Tesla sold 90% of Bitcoin

US has 'passed peak inflation' after Tesla sold 90% of Bitcoin
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Bitcoin (Bitcoin) is in short supply at Tesla, even as the CEO predicts US inflation has already peaked.

Speaking of Tesla Annual General Meeting 2022 he Aug. On Feb. 5, Elon Musk predicted that an upcoming recession in the United States would be only “mild to moderate.”

Musk on costs: “The trend is down”

After recently sell almost everything From its $1.5 billion BTC holdings, Tesla sees the emergence of exactly the kind of economic landscape where risky assets thrive.

During a question-and-answer session at the annual meeting, Musk revealed that six-month commodity prices for Tesla parts are already getting cheaper, not more expensive.

Commodities are trending lower, suggesting that inflation has already peaked.

“We have some insight into where prices are going over time, and the interesting thing we’re seeing now is that most of our goods, most things that go into a Tesla — not all, more than that Half – prices are trending down in six months,” he said.

“Of course, this could change, but the trend is down, suggesting we have passed the peak of inflation.”

The rebound from a bout of inflation that saw commodities plummet provides fertile ground for a recovery in risky assets, including crypto. In theory, this is the result of lower inflation, which means less tightening by the Federal Reserve and provides favorable conditions for risk-taking investing.

Should markets return and crypto outperform, the trend will be tongue-in-cheek for Tesla, which has divested itself of virtually all of its BTC exposure for a gain of only $64 million – Last month.

Back then Musk added that BTC could return to the company’s balance sheet at a later date and that the decision is not a comment on Bitcoin wash yourself.

The annual meeting, meanwhile, produced more optimistic macroeconomic forecasts, including a potential US recession that is “relatively mild” and will last around eighteen months. Inflation, Musk added, will “fall rapidly.”

One race higher in the second half of 2022

The irony of Musk’s comments was not lost on crypto commentators, and other voices are already betting that a rebound in stocks is here to stay.

Related: Bitcoin price: volatility ‘expected’ over the weekend with $22,000 level to hold

Among them is Fundstrat Global Advisors, which this week noted that markets have hit a historical bottom half a year before the Fed stops tightening by raising interest rates.

The second half of 2022, the company predicted, could take the S&P 500 to 4,800 points – a boon for crypto markets, which are still highly correlated with movements in stocks in general.

Ace Cointelegraph reported, further insights into the possible comeback of Bitcoin came this week from the world’s largest wealth manager. BlackRock, with assets in excess of $9 trillion, has partnered with US exchange Coinbase to bring crypto exposure to customers.

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