Top Crypto News Today: Elon Musk Comments on Inflation after Tesla Sells 90% of Bitcoin

The crypto community is being bombarded with events and actions taken by various crypto whales, the crypto market crash, and news on the merge happening within the Ethereum blockchain. The list does not stop there, there are various new projects that are being worked upon and then we have the dogefather Elon Musk, making headlines for buying Bitcoin worth $1.5 billion, selling almost 75% of that repository in 2022 and now commenting on the U.S. inflation!

Bitcoin is only a tiny part of Tesla’s current holdings, as the tech giant has sold almost 75% of its BTC, according to its Q2 corporate announcement. In the annual meeting for Tesla Shareholders, Musk has commented, based on his prediction, that the next United States recession will only be ‘mind to moderate’.

Tesla x Bitcoin Story Unfolds

Following the announcement from Tesla, which stated that the company has sold 75% of its Bitcoin holdings, according to the tech giant, crypto markets are seeing the emergence of exactly the kind of economic landscape in which assets with volatile nature tend to thrive.

The recovery process from an inflationary period with assets heading downhill tends to provide fertile ground for a recovery in volatile assets which include the newest asset in the market, i.e. crypto. To put it within a theoretical understanding capability, this comes as a result of lower inflation, which means less tightening by the U.S. Federal Reserve, providing favorable conditions for risk-on investments. Should the markets come back stronger and the crypto asset as a whole outperforms, the trend will be an ironic one for Tesla, which divested itself of practically all its BTC exposure at a profit of just $64 million sometime last month.

According to the CoinTelegraph news, “during a Q&A session at the annual meeting, Musk revealed that six-month commodities pricing for Tesla parts is already getting cheaper, not more expensive. Commodities, he said, are trending down, providing a hint that inflation has already hit its highest levels.”

Read more: Top Crypto Prices Today

In the Annual Meeting for the Tesla Shareholders, Musk said, “We sort of have some insight into where prices are headed over time, and the interesting thing that we’re seeing now is that most of our commodities, most of the things that go into a Tesla — not all, more than half the prices — are trending down in six months from now.”

At the time of the meeting, Musk also added that BTC has a chance of returning to the firm’s balance sheet at a later date. However, the decision for this was not a commentary on Bitcoin per se. CoinTelegraph also reported that the stockholder meeting, meanwhile, produced further optimistic predictions on macro, including a potential U.S. recession being “relatively mild” and lasting approximately eighteen months. Inflation, Musk added, will “drop rapidly.”

This is important to keep in mind 👇

– markets know rates are going up
– it’s the “shock” that hurts markets

Today’s job report is not a “shock”

Get the “first word” at https://t.co/Vsy6WwaIxa @fs_insight https://t.co/HtuTCJANtO

— Thomas (Tom) Lee (not the drummer) FSInsight (@fundstrat) August 5, 2022

The irony clearly on Elon Musk’s comments was duly noted by the crypto commentators, who are not shying away from their beliefs. One of the noteworthy one is the Fundstrat Global Advisors. According to them, this week of August 2022 noted the crypto markets have historically found a bottom half a year before the Fed stops tightening via key interest rate hikes. Within the second half of 2022, the firm predicted could take the S&P 500 to 4,800 points. This can be a boon for crypto markets still heavily correlated with moves in equities in general.

Source: CoinTelegraph

Additional Read: Bitcoin Price Prediction