Tesla Parts Way with Bitcoin
Cryptocurrency took a hit this week and it was delivered by one of its biggest advocates over the last few months…
Three months after Tesla announced that it would be accepting Bitcoin as payment, its founder has announced it will no longer be doing so.
In an announcement posted on Twitter, Elon Must, Tesla’s chief executive, said that the company will be suspending the acceptance of Bitcoin.
Musk is concerned about the energy consumed by computers mining the cryptocurrency. And like most things with Musk, this sent the crypto market into a bit of a spiral.
Where’s the money?
This announcement came as a surprise to many – and when you look at the past few months, it makes sense.
Earlier this year, Tesla announced that it had purchased $1.5 billion worth of Bitcoin. This led Musk to broadcast that the electric car company planned to accept Bitcoin as a form of payment for their cars.
Down the road, Tesla sold about $300 million of its BTC holdings which helped the company pad its bottom line during its first quarter. But now, the infamous carmaker has pulled the plug on its support of the cryptocurrency.
And here’s how you can handle what could be coming next…
How do I get some?
I’ve been saying this for a while, but I think BTC is going to move lower before it moves higher. In fact, I’m a believer that the cryptocurrency will go down to $40,000 before it climbs back up to $70,000. And I think with the recent news, that we’ll see BTC continuing to move lower. But that’s not the only thing I believe we will see in the red.
You see, Musk has a pretty tight grip on the market – and with one tweet, he can stir up some volatility. And I think with the BTC moving down, we’ll see Tesla (TSLA), Coinbase (COIN), and the stock market follow suit.
So, here’s how you prepare for the “red rush.”
Buy SPDR S&P 500 ETF Trust (SPY) puts or put spreads. By doing this, you can set yourself up to cash in when the market heads south and you can take that easy money straight to the bank.
Regardless of Bitcoin News…
Even though Bitcoin has become the barometer through which the entire crypto market is judged, one colleague of mine warns that traders shouldn’t fall into this trap.
In fact, for as massively as it has grown in recent years, the profit potential of smaller, lesser-known coins can be far more impressive.
Tom Gentile has actually had his eye on one microcurrency trade in particular that could 13X your money this year – that’s bigger than Bitcoin and Ethereum combined!
Get the full details right here.
In the Spotlight: The Precious Metal Doing Everything Right
Demand for precious metals has skyrocketed over the last 12 months. But there’s only one you should be focusing one – because it could pay off big.
Often overlooked for it’s more popular cousin gold, silver seems to always be second best. But lately, we’ve seen the price of silver jump over 70% in the last year. And commodity strategist aren’t expecting this rally to end any time soon as the global economy shakes off the “pandemic haze” and reopens.
This week alone, Silver was trading at $27 an ounce. That’s a mind-blowing 74% rise from a year ago when the price was around $15.5 per ounce. Now, that’s a massive jump – especially considering that gold prices has only risen 6.4% over the last year.
And all things considered, this jump in price makes sense. Silver is an integral piece of several everyday products. I’m talking everything from electronics, jewelry, coins, and more rely on silver.
I’m sure it comes to no surprise that industrial demand is pushing silver’s recent performance – and as you know, I’m all about following the smart money. So, I’m sure it’s no surprise that this price action has caught my eye.
With that said, I’ll be looking to get my money into this precious metal and I think you should too – because I see an even bigger pop coming in the future and it’s one that you can ride straight to profits.