Elon Musk Talks About Inflation After Recently Selling Most Of Tesla’s Bitcoin Holding
- Elon Musk recently talked about the recession and stated that he believes that peak inflation is over and the trend is now downwards.
- Moreover, Musk also recently confirmed that his firm, Tesla, has sold most of its Bitcoin holdings in 2021 and contributed to the downfall of BTC at that time.
At the headquarters and factory of Tesla situated in Austin, Elon Musk, the TIMES Person of the Year 2021 confirmed that, according to his beliefs, inflation will gradually decrease from this moment onwards and investors can get some relief as well.
According to a report, Musk revealed at the electric-vehicle maker’s annual shareholder meeting that he sees signs the global economy is “past peak inflation,” confirming that Tesla’s commodity and component costs are trending downward over the next six months.
This was an optimistic view of the economic that Musk pointed out which means that the broarder market might improve soon. Currently, the billionaire believes that he sees mild recession that could last over a span of 18 months.
“The trend is down, which suggests we are past peak inflation,”Musk said at Tesla’s Austin headquarters and factory.
“I think inflation is going to drop rapidly” at some point in the future, Elon Musk said in his statement while adding that “we sort of have some insight in to where prices are headed over time.” Musk also cited Tesla’s need to buy raw materials months in advance as the reason for this short insight.
“The interesting thing that we are seeing now is that most of our commodities, most of the things that go in to a Tesla — not all, but more than half — the prices are trending down in six months,”Musk revealed.
But the big question is, “IS THIS A GOOD NEWS FOR CRYPTO?”
Well, whenever there is a danger of a financial recession or high inflation, investors ususally take their money out of highly volatile markets and put them into lesser volatile assets. This is because anything goes during the time of recession and inflation.
We have seen Bitcoin drop below $20,000 in the last few months due to increased inflation among other economic reasons. So, a decrease in the current level of inflation might definitely improve the condition of the crypto market.
Elon Musk is one of the biggest backers of Dogecoin (DOGE). His firm Tesla bought Bitcoin (BTC), Ethereum (ETH), and DOGE in 2021 but sold almost 75% of its BTC holding by 2021 end. However, Elon Musk remains a strong backer of DOGE.