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How Tesla moves the crypto markets

Anyways besides macro factors there were a few crypto specific factors that moved the market last week.

The one that everyone’s talking about is the revelation that tesla sold 75 of its btc holdings which of course caused crypto to dip as most of you will know tesla famously revealed that it had bought 1. 5 billion dollars worth of btc early last year. An announcement which eventually led to the massive crypto rally we saw in the months that followed. Some of you might also recall that tesla sold 10 of its btc holdings shortly afterwards. To quote prove liquidity in plain english – the company wanted to prove to shareholders that it could sell off a large amount of btc at a moment’s notice if required at least according to tesla ceo elon musk.

Even with this 10 sale when the crypto market hit its peak in november last year tesla’s btc holdings were worth. Well over two billion dollars nearly double the dollar value of what the company had initially invested after tesla’s recent sale. However the company now holds just 218 million dollars of quote digital currency. A figure which apparently includes an unspecified amount of dogecoins (doge). If you’re wondering exactly how much btc tesla sold the answer seems to be close to 1 billion worth.

If you’re wondering how tesla was able to sell such a large amount of btc the answer is over-the-counter or otc. Basically trades that take place directly between people not on exchanges. This is why it’s unlikely that tesla’s btc sales had any direct effect on btc’s price. Not only that but the sale likely happened some time ago so whatever direct effects tesla’s btc sales did have on its price have already come and gone. The reaction to the news by the crypto market after the fact is irrelevant.

What is relevant however is the reason why tesla sold so much of its btc and what it plans to do going forward. In an earnings call Elon explained that tesla sold its btc because of the constant supply chain disruptions. The company is experiencing notably from China whose zero cough policy continues to put the country into lockdown. This confirmed my suspicion that tesla was forced to sell some of its btc stash case in point Elon emphasized that this sale should not be interpreted as a change in the company’s stance on crypto and that tesla is open to buying back all that btc in the future likely when all the macro headwinds the company is facing start to calm down. Unfortunately there was no news from Elon about when tesla will begin accepting btc as payment.

Something he said the company would do once most btc was being mined with renewable energy. Well in case you missed the memo around 60 of btc is now being mined with renewables so where you at Elon jokes aside there are a couple of publicly traded companies that could follow tesla’s lead if this week’s tech earnings confirm the sector is getting squeezed. .

Posted on and Updated on by coinmarketstrategist

About MATIC

MATIC is a Nordic word that means “to be oneself.”

The Matic Network was founded in October 2017, following a White Paper on the Plasma Framework written by CEO Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. The pair recognized that Ethereum wasn’t fully scalable and took advantage of PoS side chains linked to the root chain.

The point of this is to distinguish what these differences are and how they might impact the value of your investment.

Stakeholders in the blockchain space are interested in scalability, and they believe that proving side chain stakes will help to improve scaling. They anticipate that by demonstrating sidechain stakes, which they think will lower transaction fees, speed up confirmations, and provide a variety of other advantages after scalability issues have been addressed. They are also one of Binance’s newest ICOs on the launch pad.

The Matic network is also attempting to improve usability without sacrificing decentralization and scaling issues. They intend to leverage the existing developer community to provide more dApp features and a better user experience in the future.

 

MATIC Price History

On April 29, 2019, Matic network began its foray into the crypto world. The currency steadily climbed again and again. At the end of May, the price dropped by $0.03 with a few fluctuations, and it continued to fall throughout June until it was down to $0.01 at the beginning of July. The token stayed constant for much of July, when it changed hands for $0.02 per unit.

The cryptocurrency’s market capitalization has been growing at an exponential rate since its inception, from around $1 billion to more than $60 billion in less than a year. The bitcoin supply is limited, and it is expected that the price will rise significantly when this resource runs out. In fact, experts believe that the current price of bitcoin might continue to increase for many years to come. At the end of 2021, Matic was trading for about 0.01 US dollar per token; however, things changed dramatically after mid-November when it dropped down to $0.01 on several exchanges (price fluctuations have been observed throughout November).

On a simple note, the Matic continued to trade at $0.014 in the early hours of January 2020. The price fluctuated from thereon and climbed as high as $0.02 in February. Covid-19 epidemic played a role in plummeting the coin’s value by mid-March to $0.006, while the crypto market fell sharply. Furthermore, towards the end of May, when prices were still low, they rose and resisted at $025 before settling around $012 in late November. At the end of December 2020, Matic was trading at $0.017 per unit (numbers may not be exact).

The MATIC price has broken a new record in 2021, ranging from $0.94 to $2.1, with the greatest recovery rate of all cryptos including Bitcoin and Ethereum monsters. It is expected that most currencies will only increase following the significant price drop recently, according to many traders. Polygon is predicted to have a bright future by many traders, who believe it has endured and maintained its trend despite the fact that several coins have fallen by around 20%.

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Stellar Lumens

The goal of Stellar Lumens was to assist customers break free from the restrictions of international transactions, including lengthy transaction times and pricey fees. The creators of Stellar Lumens wanted to provide a quick and cheap way to send and receive money across countries. It’s worth noting, however, that the cryptocurrency was built on the Stellar network in order to function within its system.

XLM/USD isn’t a volatile market. In 2017 and 2018, the pair rose to an all-time high of $0.9381 on January 4, 2018. Its value dropped quickly similar to other cryptocurrencies, and the downtrend persisted until the beginning of 2019. In 2019, the cryptocurrency stayed stagnant for the most part. 2020 altered this situation dramatically. The long-term rise in XLM/USD was highlighted at the end of 2020.

On February 2021, the price rose above $0.35 for the first time. However, the bulls’ momentum was lost, and the price fell. On January 17 2021, the XLM/USD pair established a new ascending trend. Will bull traders have enough power to propel XLM past its previous high near $0.35? With so many various types of cryptocurrency accessible, will it be able to endure? What events might influence Stellar Lumens’ price in coming months? Should you invest in Stellar Lumens? Continue reading to learn what are the most realistic predictions!

Overview of Stellar (XLM)

Stellar is a peer-to-peer, decentralized exchange. The currency used on the platform is Lumen (XLM). Stellar was launched in 2014, and since then, Lumen has risen to become one of the top 20 most valuable cryptocurrencies, according to September 2020 rankings.

XLM’s creators dedicated the mission statement to making financial services accessible worldwide via Internet access and simple hardware after realising that many people in various parts of the world don’t have easy access to finance – and, frequently, service fees are prohibitively high.

The current value of 1 XLM is $0.260908 (as of January 16, 2021, on CoinGecko). In early 2018, the value of XLM skyrocketed to $0.8755, only to plummet rapidly afterward. The increase was brief, and the value soon returned to normal and remained relatively steady throughout 2020. Although the figures do not compare to what it was worth in 2018-2019, they are still far more valuable than during its early years of existence.

Advantages of XLM

XLM is not only faster but also more secure than Bitcoin, Ethereum and other cryptocurrencies that require miners. The settlement of the transaction takes around 3-5 seconds on average, even for large sums. This means it’s far quicker to transfer money from one place to somewhere else in the world.

XLM transfers are very inexpensive, making them a viable alternative to other methods of money transfer when compared to the competition.

With some currencies, finding a functional currency pair might be tough. When you use XLM, the sender’s

Beginners will find it simple to get started because everything they need is accessible through the internet, even if you have no prior experience with adding new users.

Disadvantages of XLM

There is no mining – Unlike BTC, XLM cannot be mined since it doesn’t use Proof-of-Work.

BTC isn’t widely accepted as a payment option – You may now use BTC to pay for a variety of products and services. Despite this, XLM is not as popular among merchants.

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Nawadays crisis of crypto companies and tech giants

Now it’s not just crypto companies that are in crisis.

These days tech giants have been in trouble too and that’s bad news for both stocks and crypto. It’s bad news for stocks because tech companies make up a substantial chunk of benchmark investment indices like the s&p 500 so if they perform poorly they’re likely to drag down the rest of the stock market too. Similarly the crypto market is highly correlated to tech stocks specifically the nasdaq 100. It should come as no surprise then that the nasdaq also saw a nice recovery late last week just like the crypto market recovery. However the recovery in tech stocks is unlikely to last for long.

Although tech giants like apple and amazon are still doing all right. Last week google announced that it won’t be hiring as many people going forward due to the quote uncertain economic outlook and microsoft went as far as to announce that it would be laying off quote less than one percent of its workforce. As reported by the guardian netflix, meta google, twitter and tesla will all be releasing their q2 earnings over the coming weeks and the cracks forming at google and microsoft suggest that these earnings will come in below investor expectations. Case in point meta ceo mark zuckerberg recently stated that quote “this might be one of the worst downturns that we’ve seen in recent history and that the company would be hiring 30 fewer software engineers as a result”. Now to be fair, this news from meta isn’t all that surprising.

Given that the idea of a centralized metaverse owned and operated by a company that’s known for censorship isn’t all that appealing to anyone with half a brain. Even so it’s clearly a sign of a bigger trend that’s only just beginning and with most tech companies having profit to earnings ratios that remain astronomically high. It’s likely that we will see many of their stocks slide in the second half of the year. This is once again consistent with the projection that the crypto market will see its bottom sometime in the autumn and it could mean that the bottom for crypto will be even more brutal than many investors are expecting. The caveat is that big tech companies and other market movers in the sp 500 still have record levels of cash in their reserves.

According to the wall street journal the largest US companies still have a whopping 8. 3 trillion dollars in cash or cash equivalents. Thanks to the federal reserve’s money printing. Many analysts believe this could give companies enough runway to survive the recession when it inevitably comes. Assuming we’re not in one already who knows maybe some of this massive money pile will find its way into crypto because of all the inflation going on.

This brings me back to the elephant in the room which is of course inflation. Last week the cpi for June was released and it came in at a staggering 9. 1 percent significantly higher than the 8. 8 percent investors were expecting. As you might have guessed this is what caused that sharp dip in the markets on Wednesday and it seems the only reason the markets recovered was because consumer sentiment is somehow on the rise according to the university of Michigan.

As you can see however this apparent recovery is barely visible on the long-term consumer sentiment. Index it rose to 51. 1 from 50 in june which was actually the lowest level consumer sentiment had ever been since the index was created. This is not all that surprising given that consumers are being financially crushed on all fronts and costs only continue to rise. I reckon the only reason why we saw this small recovery is because people are happy to be out and about after being locked down for two years.

That said another contributing factor to the market recovery was something that almost everyone overlooked and that’s the 900 billion dollar military spending package that was passed by the us house of representatives on Thursday. As with many massive bills the military spending package contains a few critical clauses such as a 4. 6 pay rise for us military personnel and an official raising of the minimum wage for public workers to 15 an hour. The harsh reality is however that these two clauses are likely to contribute to inflation since more money chasing the same amount of goods means prices go up. This just goes to show you that the monetary policy of central banks is just a part of the inflation equation.

The fiscal policy of governments plays a role as well and some have argued that it plays an even bigger role than monetary policy. At the same time you have all the supply side pressures that can’t be solved by governments or central banks. This is why i think inflation is likely to continue for the foreseeable future and why i’ll be doing a text about how to keep up with and even beat inflation sometime next week. In the interim you can check out my recent texts about all the unprecedented disruptions to food processing facilities using the link in the description. Now i know we looked at bitcoin’s charts earlier but i wanted to bring your attention to the wyckoff pattern that appears to be forming on btc’s daily price chart.

If you read our article about the wyckoff method you’ll know that it’s basically used by institutions to trick retail investors into buying and selling at the worst possible time the wyckoff method we seem to be seeing. Now is accumulation and if so we could see one more sharp drop to the 18k level before snapping higher as per the spring. If this does happen i bet it will be around the fed’s meeting and the release of the gdp figures for q2 this year so just keep that in mind. Last week’s top performing cryptos were lido finance’s ldo token, polygons matic token, r weaves ar coin, ethereum classics, etc coin, and quant network’s qnt token. As i mentioned earlier lido finance’s ldo token is rallying on the news that ethereum developers have set a tentative date for the merge ldo’s long-term price history suggests.

It’s likely to see lots of resistance around these levels but if it can break higher the next stop will be 2. 50 to 3. Close to a 2x gain at the time of shooting. Next we have polygons matic token which is rallying on the news that the project had been selected to participate in disney’s accelerator program. Polygon is also ethereum’s leading scaling solution so matic likely got some extra momentum from the tentative merge date.

Like ldo matic faces a lot of resistance around these levels but could rise as high as a dollar if it can break through the 80 cent barrier full disclosure. I hold matic as part of my personal portfolio and you can find out what else i hold by signing up to my newsletter in the description below. As for arweave its ar coin appears to be rallying on the news that the project had partnered with one of the front ends. For arvei’s decentralized social media platform lens protocol more about ave in the description. Like ldo and matic ar has a lot of resistance around the 15 level with some luck it’ll manage to reclaim the 25 mark in the coming weeks where the next level of resistance awaits.

When it comes to ethereum classics etc coin this is also something i covered earlier. Etc is rallying because many investors believe it will stand to benefit when ethereum transitions to proof of stake. I rather wonder just how much etc could rally though because the ethereum classic twitter account hasn’t posted anything since late april. This leads me to believe that what we’re seeing now has less to do with fundamentals and more to do with speculation. Last but not least we have quant network’s qnt token and i honestly couldn’t identify the origin of its most recent pump.

My best guess is the news that 1900 people had signed up for the crypto projects course about its over ledger protocol at king’s college here in london. Qnt is actually looking quite strong on the daily and if we see another bull flag play out it could rally as high as 120 dollars in the coming weeks. .