Bitcoin is lower for the third consecutive day and has fallen through $19,000 for the first time since October 13.
The latest catalyst for the worsening mood in risk assets was a revenue miss in Tesla earnings. Shares are trading down 5.4% after hours following a miss on revenue and a conference call where Elon Musk virtually confirmed that he will be buy Twitter. That likely means he has to sell more Tesla shares.
Musk has an on-and-off relationship with crypto after a well-publicized dalliance in dogecoin. He’s also criticized energy usage in bitcoin and Tesla is no longer accepting it for payments.
In the short term the drop in bitcoin below $19,000 is negative but in the bigger picture, it’s been in a ranger from $18,100 to $20,400 since early September and the next leg will be determined by whatever direction that breaks. If stocks continue to fall and rates continue to rise, a crack lower is highly likely.
