Sometimes people just want to celebrate, even if there isn’t anything particularly exciting to celebrate.
Perhaps that’s why my Twitter feed lit up this morning on the news that…
In this single tweet, Elon Musk has probably garnered more engagement than I have in the last year and more than many have garnered in an entire lifetime. Click to tweet
But seriously, we already knew about this more than a month ago, or more specifically, on Feb. 8, when Tesla announced…
So why did the price of bitcoin jump 6.5% in the three hours following Musk’s tweet?
Is it a case of buy the rumor, buy the fact? Or is there something deeper here?
Some have emphasized that the real news is Musk’s clarification that bitcoin used to buy cars will be held by the company and not converted back to U.S. dollars, which is pretty cool.
But, if they’re already holding more than $1 billion worth of BTC and possibly buying more anyway, who really cares about the pocket change?
No doubt some people are excited by the prospect that this positions bitcoin more as real money, since people can now use it to buy a luxurious item rather than having to realize their gains and pay taxes on them.
Unfortunately, that is not the case. Bloomberg has already clarified that anyone buying a Tesla directly with bitcoin will be subject to the usual capital gains.
Besides, how many people out there are actually planning on converting an asset that’s designed to appreciate for a car that will be worthless within a decade or two?
No savvy investor I know would do that.
Well, at least people want to be bullish on bitcoin, which is more than I can say for other markets today.
Technology stocks are taking a proper shellacking, especially the ones that have recently gained widespread popularity on Reddit’s Wall Street Bets forum.
AMC and Tesla are firmly in the red today, and the kicker that makes me want to cry is GameStop, which is down 30%.
Thinking about all the new investors out there who bought into this with the idea that they’re gonna get back at Wall Street and are now getting completely crushed is depressing.
A container ship stuck in the Suez Canal has sparked a 6% rebound in oil prices this morning.
Also, for long-term traders looking for undervalued tech stocks, it could be worthwhile to check out Intel and the bold moves they’ve been making to consolidate the shorthanded chip industry.