Musk Forces Crypto Again, Markets Prepare For ECB

22 июл. 2021 г.

The B Word Conference was held yesterday. Its goal is to whitewash Bitcoin, which has recently been under the yoke of fundamental negativity and seller pressure. The speakers of the conference are a set of heavyweights in terms of influencing the immature minds of crypto investors: Kattie Woods (one of the most active adherents of the cryptocurrency market among institutional investors), as well as "our everything" Elon Musk, who either renounces the crypt or assures her of his love for her to the grave, - they tried to de-demonize the image of cryptocurrencies.

Musk specifically stated that Tesla is currently the only publicly traded stock he owns, and that he personally owns bitcoin, dogcoin, and ethereum. And in general, cryptocurrencies are great, even though the mining activity is not environmentally friendly, but this is all due to the outdated proof of work protocol, but proof of state is another matter and in general it's time for Tesla to be friends with bitcoins again.

In general, the noise was raised, and the rise in prices in the cryptocurrency market at the end of yesterday showed once again that there is no fundamental value under them - this is a pure hype product.

In general, prices in financial markets continue to live in their reality. The sales on the US stock market have already been forgotten. Nobody even remembers about the new wave of the pandemic and the threats that it promises. Or take the oil market, for example. It would seem that the week started with sales against the background of fundamental negative (new OPEC + quotas), which was strengthened by data on oil reserves in the United States: they showed growth for the first time in more than 2 months. But this did not prevent oil from growing. Since this happened in sync with the growth of other risky assets such as the stock and cryptocurrency markets, obviously, we have a continuation of the "rally of everything". This means that divergences between the real economy and its projection in the minds of investors are increasing.

The main event of today is the announcement of the results of the ECB meeting. If it were not for the new wave of the pandemic, one could talk about intrigue and potential tightening of monetary policy. But under current conditions, the status quo is the most likely scenario for the development of events.