Market analysts argue that Tesla’s exposure to Bitcoin may be the reason for its strong decorrelation with Big techs in recent weeks. As of Wednesday, July 14, the 20-day correlation between the company’s price and the Nasdaq 100 index fell from 0.83 on June 17 to 0.14.
While Tesla has lost almost 4% this month, the Nasdaq 100 has risen more than 2%. There is also a weakened correlation between Tesla shares and the NYSE FANG + index, as reported by BNN Bloomberg. Amy Wu Silverman, derivatives strategist at RBC Capital Markets, told reporters:
“Tesla is highly correlated with megacap technology, this relationship has really decoupled in the short term. When I ask, the feedback I get is that this is related to their exposure to Bitcoin and how it will have to be accounted for when they report profits.”
The electric vehicle manufacturer’s earnings report is due on July 26. Tesla’s hectic and controversial relationship with Bitcoin dominated the headlines. And, it possibly catalyzed a bull run in the cryptocurrency market, in February of this year, when the company revealed a strategic acquisition of $ 1.5 billion in Bitcoin valued at 7.7% of its gross cash position at the time. He soon announced that he would start accepting BTC payments for his vehicles, indicating plans to hold, rather than sell, Bitcoin.
Italian regulator says cryptocurrency exchange Binance is not authorized
Italy’s financial regulator CONSOB said Binance is not authorized to provide investment services in the country.
“The companies of the Binance Group are not authorized to provide investment services and activities in Italy” despite the fact that parts of the website are written in Italian, CONSOB said in a statement on its website.
The regulator said last month that the unsupervised spread of crypto was cause for concern.
CONSOB reiterated the warning, advising savers to “adopt the utmost caution” when transacting with crypto assets.
The announcement follows a series of similar statements from financial regulators. That warn consumers that Binance is unregulated or not authorized to operate in their jurisdictions.
UK regulator to launch £ 11m campaign warning about crypto risks
The UK Financial Conduct Authority (FCA) is launching a £ 11 million (US$ 15 million) marketing campaign. To warn young people about the risks of investing in cryptocurrencies.
The move was announced by CEO Nikhil Rathi in a speech Thursday. This, as part of a webinar on the role of the FCA as a proactive regulator.
Citing recent research that found nearly 2.5 million Britons own crypto assets, Rathi highlighted the FCA’s concern that crypto holders are more likely to be younger. And, behave ” less rationally and more emotionally. Incited by anonymous and irresponsible social media influencers.”
“This is a category of consumer that we are not used to relate to. Young people aged 18 to 30 are more likely to be attracted to social media.” Rathi said.
Cambridge data shows hash power in China fell before miners crackdown
China’s crackdown on Bitcoin mining due to concerns about energy consumption is widely seen as the trigger for the exodus of miners from Asia to western countries. But new research from the Cambridge Center for Alternative Finance suggests that the shift in mining power began before China’s renewed scrutiny.
Reuters reported that China’s total computing power connected to the Bitcoin network, or hash rate, fell from 75.5% in September 2019 to 46% in April 2021. Even before the Asian country officially announced mining repression.
Over the same 18-month period, the United States quadrupled its share of the global Bitcoin hash rate from 4% to 16.8% to become the second largest Bitcoin producer. Another country often named as a potential destination for the relocation of miners, Kazakhstan, increased its share to 8%. And, it became a major producer of Bitcoin.
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