Tesla Chief Elon Musk in a meeting on Saturday predicted that the worst of the inflation is now behind and the pressure will start declining soon. Elon Musk was talking in the recent shareholders’ meeting on Saturday, August 6.
Elon Musk highlighted that the company’s commodity costs will decline in the coming six months. As Per the Tesla, “The trend is down, which suggests we are past peak inflation. I think inflation is going to drop rapidly at some point in the future. We sort of have some insight in to where prices are headed over time.The interesting thing that we are seeing now is that most of our commodities, most of the things that go in to a Tesla — not all, but more than half — the prices are trending down in six months”.
Falling Inflation-Is It A Good News for Crypto?
Today inflation is surging past 9% to reach the highest in four decades in the US. Today money is being transferred from the equity and crypto market into risk-off assets like bonds and treasuries. With inflation surging, the Federal Reserve is resorting to remedial measures in the form of hiking interest rates.
With the ebbing of the inflation tide as predicted by Elon Musk, the flight of capital from the crypto sector could also reduce. Additionally, it will also lead to the investors holding on top their crypto investments and even make fresh entries for the long term.
The largest asset manager BlackRock declared its partnership with crypto exchange Coinbase. In a symbiotic partnership, both the entities will accrue benefits from one another and BlackRock to offer crypto exposure to its institutional clients. Blackrock has more than $10 trillion as assets in its coffers and even if 5% of this exposure to crypto would flush a staggering $500 billion liquidity in the crypto space. It is also indicative of the acceptance of crypto among the institutional investors