Money After crypto investment: According to experts, Tesla shares are now directly linked to the Bitcoin price
Bitcoin plunges 8% as record-shattering rally succumbs to valuation fears
Bitcoin tumbled 8% Monday after hitting a record above $US58,000 for the first time over the weekend. On Sunday, Bitcoin hit $US58,042, for a year-to-date gain of over 100%. The popular cryptocurrency surged 305% in 2020. Sign up here for our daily newsletter, 10 Things Before the Opening Bell Bitcoin tumbled 8% Monday to below $US53,000. The drop comes a day after the cryptocurrency hit a new record of $US58,042 on Sunday, for a gain of over 100% year-to-date. The cryptocurrency on Friday reached a market capitalisation of $US1 trillion for the first time.
With the announcement that it will invest billions in the crypto currency Bitcoin, the electric car manufacturer Tesla not only caused a stir - it also ensured that the price of the Cyberdevise jumped to a new record high. According to Wedbush analyst Daniel Ives, with this step the group also ensured that the price of the Tesla share is now directly linked to the price of the Internet currency.
• Tesla shares exposed to Bitcoin volatility after investment
• Focus not currently on core business
• Bitcoin trend will continue in US companiesBitcoin investment increases Risk for Tesla share
At the beginning of February, the US electric car manufacturerannounced that it would not only offer its customers payment with the crypto currency , but also had made an in the cyber currency - which clearly drove their course. - Trade 76.4% of retail investor accounts lose money when trading . You should carefully consider whether you can afford the high risk of losing your money. - This step seems to have had another consequence for the group under the leadership of Elon Musk: The price of the Tesla share is now directly linked to the price of the cryptocurrency, Wedbush analyst Daniel Ives told "CNBC". "Musk is now tied to the Bitcoin story in the eyes of Wall Street, and although Tesla made a billion dollar profit on paper in the first month it owns the digital , it comes at an additional risk" as the strategist notes in relation to the recent fluctuations in the price of the cyber currency.
US payment service Square buys bitcoins for 170 million dollars
Square continues to invest diligently in the cryptocurrency Bitcoin. In the future, the digital payment method will also be integrated into the company's own service. © Tada Images / Shutterstock Entrance to the Square HQ in San Francisco. The US payment service Square, co-founded and run by Twitter boss Jack Dorsey, has bought around 3,318 Bitcoins for 170 million US dollars (140 million euros).
"Smart move" by crypto trendsetter Tesla
But this also makes the price movement of Tesla shares much more uncertain. "Since Tesla is jumping into the deep end with Bitcoin, Musk runs the risk that this sideline will overshadow the fundamental electric vehicle vision for investors in the near future," the expert continues. Nevertheless, the future-oriented system is a "smart move" at the right time. Ives believes that the e-car pioneer has already made more than a billion US dollars in profit with his crypto investment. "You made more money from Bitcoin than last year from selling e-cars." Tesla is also once again playing a pioneering role in the field of companies that invest in cryptocurrencies. In the next twelve to 18 months, between three and five percent of all US companies should own Bitcoin or other cryptocurrencies, which is also supported by the recent crypto investments of the fintech companyor the software provider . "[The trend] will be limited until more regulatory requirements are implemented, but not go away," Ives is certain.
900 percent "interest" and more: This is behind the farming of crypto currencies
Anyone who wants to increase their crypto assets gets a tool with Yield Farming. With farming, profits of several hundred percent can be achieved - but of course not without risk. © Shutterstock / Scharfsinn With the farming of crypto-coins, high profits can be made. In farming, you use smart contracts to lend your money and collect fees in the form of a crypto currency.
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The Wedbush- Analyst - despite the recent return of the Bitcoin price - assumes that Tesla shares will grow in the long term. "We believe that Tesla will achieve a market capitalization of one trillion US dollars in the coming months through its growth in the field of electric vehicles, and not through the Bitcoin," Ives confirmed to the broadcaster. "We believe EV adoption is skyrocketing globally, led by China, and that suggests Tesla is well positioned to capitalize on this $ 5 trillion market for the next decade," so the expert continues. Nevertheless, the Bitcoin hype is currently dwarfing the actual achievements of the electric car pioneer. Soon, however, Tesla will again be the subject of public discussion about what defines the company - namely its unparalleled achievements in the electric car industry. Finanzen.net
Tesla models in Japan: Model 3 is almost a quarter cheaper .
In the past few months there have been smaller price reductions for the Model 3 in various countries - now Elon Musk is also reducing the price in Japan: the variants are up to a quarter of the e-car cheaper. What's behind it? © Provided by Finance.net ASIF HASSAN / AFP / Getty Images • Tesla price reductions in several countries • Model 3 Long Range in Japan 24 percent cheaper in February • Price reductions serve to strengthen Tesla's position in the market A few weeks ago, Tesla CEO Elon Musk