The global fall in cryptocurrency prices is having an impact on risk-on sentiments. In fact, over the weekend, Bitcoin had fallen by about half from its all-time high of $67,802.30 in Nov 2021. The tumble resonates with weaker international economic sentiments as investors shun away from risky assets.
We have also heard from MicroStrategy’s CFO said during the earnings calls that it will face a margin call when the Bitcoin price falls to $21,000 since the company took out a $205 million loan with Silvergate Bank to bet more on Bitcoin. The company holds more than $5 billion in Bitcoin at the end of March.
Tech-heavy Nasdaq Composite is also hurt by the weaker appetite for long-duration stocks in the fight against inflation. With the Fed winding down its massive $9 trillion asset portfolio, risk assets appear last on investors’ list.
As the 10-year Treasury yield continues its ascent, it is no wonder market participants prefer the safe-haven asset compared to equity. All eyes will be on the CPI data this week as it will sheld shed light on the inflation narrative once again.
💎Mark your calendars on Tesa🚙
Tesla will be holding its annual meeting of shareholders on 2 August. It will be a critical moment as it might pave the way for a stock split. This will cheer investors because the last time it happened, the shares rose more than 60% within 2.5 weeks.
Most investors see the voting process as a formality, likely to receive massive support. A stock split often hints at management’s optimistic view of the business since the break does not change any fundamental value of the business.
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