Bitcoin may have played a role in Tesla’s discorrelation with large tech companies

Market analysts believe Tesla’s exposure to Bitcoin (Bitcoin) May be the reason why Big Tech has drastically de-correlated in recent weeks. As of Wednesday, July 14, the 20-day correlation between the company’s stock price and the Nasdaq 100 index has fallen from 0.83 on June 17 to 0.14.

Although Tesla has fallen nearly 4% this month, the Nasdaq 100 Index has risen by more than 2%.It can also be observed that the correlation between Tesla stock and the FANG+ index of the New York Stock Exchange has weakened, such as BNN Bloomberg ReportAmy Wu Silverman, derivatives strategist at RBC Capital Markets, told reporters:

“Tesla is highly related to super market technology […] This relationship has indeed decoupled in the near term. When I asked around, the feedback I got was that it had something to do with their Bitcoin exposure and how they had to account for it when they reported earnings. “

The electric car manufacturer’s earnings report will be released on July 26. The eventful and controversial relationship between Tesla and Bitcoin made headlines – and arguably catalyzed the bull market in the cryptocurrency market – February this year, When the company discloses Strategic acquisition of $1.5 billion worth of Bitcoin, Valued at 7.7% of its total cash position at the time.It will soon be announced Accept BTC payments for their vehicles, Which means that you plan to hold rather than convert Bitcoin.

the company Some bitcoins were sold in the first quarter of 2021, Resulting in a net income of $272 million, although Musk is keen to emphasize He himself didn’t sell any of his own things Bitcoin holdings.By May, the close ties between Tesla and established cryptocurrencies began to collapse, and Musk announced that Tesla would Exit BTC payment acceptance Due to environmental concerns about energy-intensive Bitcoin mining.

related: Elon Musk and Bitcoin: a toxic relationship

Time will tell whether Tesla’s recent weakening of correlation with large technology stocks will become an established dynamic.In the field of encryption, many people are more focused on The huge influence of Musk himself In the entire crypto market, the most notable ones are Bitcoin and Meme cryptocurrency Dogecoin (dog).