Emotions were red-hot in the cryptocurrency market over the weekend, with discounts reaching 20 percent. Prices of major cryptocurrencies collapsed after Elon Musk's tweets. Gold is starting to shine again at the beginning of the week.
Today bitcoin costs the least in about three months - $42.2 thousand. Earlier, Elon Musk suggested that car maker Tesla has already disposed of, or will soon do so, the rest of its bitcoin.
Two big shocks, but overall a positive year
Last week, Tesla suspended the ability to purchase the vehicles it makes with BTC, citing the use of fossil fuels to mine the virtual currency as justification.
This morning, in turn, Elon Musk wrote that Tesla has not sold any of its bitcoin holdings, which helped to stabilize a very nervous situation in the cryptocurrency market.
In the end, the BTC/USD exchange rate has fallen by more than 32 percent since the peak in mid-April. This is a bigger drop than the shock that occurred in January this year, when the price of BTC slid by 30 percent. The ETH/USD exchange rate has fallen by 25 percent, which is the biggest correction since February, when the quotes fell by 34 percent. However, it is worth remembering that since the beginning of the year, bitcoin has gained 54 percent, ethereum 386 percent, and litecoin 128 percent.
Gold and silver most expensive in three months
Gold prices rose on Monday to their highest level in three months. An ounce costs 1855 USD. Factors of a weaker dollar, falling U.S. Treasury bond yields and rising inflation expectations may have contributed to this.
Members of the Federal Reserve indicated last week that any increase in price pressures would be temporary and expected to ease as commodity supply chains adjust to rising demand.
Gold is also benefiting from demand for so-called safe havens as a result of the coronavirus crisis.
Silver also rose to 3-month highs today, at above $27.5 per ounce. Silver has risen as much as more than 70 percent in the past 12 months, which may have been driven by demand from industry, which is growing as the economy recovers and post-pandemic restrictions are lifted. A global shift toward green technologies, such as solar panel manufacturing, is also supporting silver demand.
Coronavirus in Asia continues unabated
The latest economic data showed that retail sales in China grew less than expected in April, which may suggest that the rebound seen in the first quarter is slowing.
Singapore and Taiwan are struggling with new outbreaks of coronavirus, and the situation in India remains very difficult. The death toll exceeds 4,000.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
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