What happens when two billionaires – or oligarchs, if you prefer – publicly talk about investments, inflation, and crypto online? You listen, of course.
You’ll never walk Elon
The story started when Tesla CEO Elon Musk tweeted about his company feeling the effects of inflation and asked for opinions. Though many chimed in, Musk took the time to reply to MicroStrategy CEO Michael Saylor who claimed that rising inflation would trigger Bitcoin adoption at a mass level.
USD consumer inflation will continue near all time highs, and asset inflation will run at double the rate of consumer inflation. Weaker currencies will collapse, and the flight of capital from cash, debt, & value stocks to scarce property like #bitcoin will intensify.
— Michael Saylor⚡️ (@saylor) March 14, 2022
For his part, Musk delivered a promise of sorts, one that reassured many crypto-bulls. He claimed,
“I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw [for what it’s worth].”
Furthermore, Musk asserted it is preferable to hold “physical things” like a home or company stocks, over dollars during inflationary periods.
Time to Saylor away?
This conversation was important as it revealed the public opinions of two crypto-whales regarding the future of the fiat-based world economy and the crypto-industry. What’s more, some investors might want to know whether the Musk x Saylor discussion did indeed help shift some prices.
However, Dogecoin was in the red at press time, while Bitcoin and Ethereum were struggling to stay in the green zone.
In fact, there may be larger factors at play as traders await the Federal Reserve’s decision on a rate hike. This is key for experts who are concerned by Bitcoin and Ethereum’s correlation with the S&P500’s movements this year.
Data from Santiment further revealed that the “crypto crowd” is highly interested in interest rates and Fed actions, based on the social volume of keywords. Santiment also suggested the developments could lead to a “make-or-break” week for the top two assets which have been struggling to cross previously surpassed resistance levels.
🏦 This week will be big for #crypto and #equities traders, as the #Fed is expected to decide on a quarter-point rate hike this week. #Bitcoin & #Ethereum have been pegged to the #SP500 in 2022, and these decisions should impact #cryptocurrencies greatly. https://t.co/G2G5Nsn8kr pic.twitter.com/XhvpJ9fj0z
— Santiment (@santimentfeed) March 14, 2022
Ergo, a tweeted dialogue between Musk and Saylor might not be as impactful as actions taken by America’s administration.
Fear pill or greed pill?
Twitter aside, how are Musk and Saylor’s own investments shaping up? Both Tesla and MicroStrategy keep huge volumes of Bitcoin on their balance sheets. At press time, Tesla shares were down by 7.12% in five days while MicroStrategy shares fell by 5.85% over the same period.
On the contrary, Bitcoin was trading at $39,079.99, having risen by 0.05% in 24 hours and hiking by 2.58% over the week. At the last count, the market was in a state of extreme fear.
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