Bitcoin Rise, Earnings Season Peak, and Tesla Surprise

27 июл. 2021 г.

The most interesting thing happened yesterday in the cryptocurrency market. Last week, following a conference with the participation of Catty Woods, Elon Musk and a number of other hype lovers, it seemed that long-lost optimism returned to the cryptocurrency market. Which once again confirmed that the current prices for cryptocurrencies in no way reflect the fundamental value of the asset, but is an indicator of market sentiment.

So, putting on rose-colored glasses again, crypt lovers again saw that the world of the crypt is beautiful and promising. In the old / new pink glasses, the news that Amazon had posted a vacancy announcement for the “Digital Currency and Blockchain Product Leader” was taken almost as information that cryptocurrencies are becoming a full-fledged means of payments in the Amazon ecosystem.

Considering that Amazon is not Tesla for you in terms of the scale of commerce, everyone rushed to buy cryptocurrencies indiscriminately. It would seem that Tesla's case clearly showed how all this will end, but the memory of the markets, apparently, is measured in a few days, if they have it at all.

It didn't take long to wait for comments from Amazon and the inevitable fall in prices in the cryptocurrency market. The company said that all these rumors do not correspond to reality and they do not plan to accept any bitcoins for payment at Amazon.
By the way, how many cars did Tesla sell for bitcoins there? There is no official information. I wonder why? Maybe because bitcoin as an actual means of payment for the entire time of its existence has been used in 2% of cases out of 100% and, accordingly, there is simply nothing to report about.

Perhaps this is all the result of a general wave of relief from the scare at the start of last week. Moreover, today the quarterly reports will be published by Apple, Microsoft and Alphabet. And by the end of the week, all of the five FAAMG will report. Considering how well these companies are in shape, as well as the segments in which they operate, optimism seems reasonable and somewhat inevitable. As a reminder, a quarter of SP500 companies have already reported and 88% of them showed results higher than analysts' forecasts.

Tesla reported yesterday. The company's financial results were frankly surprising. Musk's call to cut the bones seems to have been heard. At least this alone can explain the growth in profits against the background of a decrease in revenue from the sale of regulatory loans, which have always been the only source of profit for the company. For the quarter, profit exceeded $ 1 billion on regulatory loan sales of $ 354 million. This is definitely a success. And the losses from the ingenious investment in bitcoins amounted to only 23 million. But Tesla's problem is that all this positive and positive in the foreseeable future has long been taken into account and recounted in the prices of the company's shares, which are still radically out of touch with reality.