Jeff Sica of Circle Squared Alternative Investments claims Finance Minister Janet Yellen is ‘dead scared’ of bitcoin because it is seen as a threat to the Federal Reserve.
Tesla shares fell in a bear market, more than 20% lower than the recent high, and some analysts believe the company’s ties to bitcoin should be blamed, as the currency is being hit after more cautious comments from the US Treasury Minister, Yellen.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| TSLA | TESLA INC. | 698.84 | -15.66 | -2.19% |
The stock, which was about 26% lower than the closing point of $ 883.09 on January 26, fell back with the digital currency. Bitcoin fell about 17% to $ 48,170 from Tuesday after reaching its high of $ 58,332, followed by Coindesk.
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Thanks: Dow Jones Market Data Group
The electric vehicle maker, which is investing $ 1.5 billion in the currency to diversify its cash holdings, as described in a document at the Securities and Exchange Commission last month, could be a double-edged sword.
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‘Investors are starting to tie Bitcoin and Tesla to the hip. While Tesla earned about $ 1 billion on Bitcoin on paper in a month that exceeded all of its 2020 EV profits, the recent 48-hour sell-off in Bitcoin and the volatility have contributed some investors to short-term exits on drove this name. ‘Dan Ives of Wedbush, analyst, said he believes the move was a strategic strategy for the long term. “Ives judge the stock as a hold, but see further gains.” We maintain our $ 950 price target and a $ 1,250 bull drop added.
The volatility in bitcoin this week also came when Yellen repeated cautious comments when asked about the future of a digital currency.
“Bitcoin and I have said it before – it is widely used as a transaction mechanism to the extent that it is used. I’m afraid it is often for illegal financing. It is an extremely inefficient way of conducting transactions. And the amount of energy consumed in processing it transactions is staggering.But it’s a very speculative asset, and you know, I think people need to be careful.It can be extremely volatile, and I’m worried about potential losses that investors in it may have suffer, “Yellen said in an interview with the New York Times’ DealBook DC policy project on Monday.
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Yellen’s remarks follow an explanation from Tesla CEO Elon Musk last week about what lies behind his company’s stake in the digital asset.
“If fiat currency has negative real interest, only a fool would not look elsewhere,” Musk tweeted last week.