BeInNews Academy Ltd © Street: Suite 1701 – 02A, 17/F, 625 King’s Road, North Point. Hong Kong.
The first three months of next year could be huge for both SpaceX — and, by inference, the price of Tesla stock — and reward getting cut in half.. Both of them will be looking skywards in early 2020, with Elon Musk’s company teaming up with NASA for a first manned mission and Bitcoin’s mining
It was announced that SpaceX’s new Crew Dragon astronaut capsule will be ready for its first manned flight into orbit in the first quarter of next year.
It is a big step for SpaceX — a company that Musk has a 54 percent stake in — and it could spill over to boost Tesla’s stocks.
More so, its timing could coincide with Bitcoin’s own predicted increase in value as it becomes 50 percent more scarce by May 2020.
For Tesla — a separate company to SpaceX but one that is also heavily invested in by Musk, who has 20 percent ownership and is the de facto face of the company — the advancement to manned space travel is indicative of advancing technology. This is part of the story of Tesla, as well.
The stock of the electric car company may well be down from its earlier highs. What makes it different from other stocks, however, is the fact that Tesla’s story plays a big role in its performance. Explained John Rosevear, an automotive investor:
Tesla’s valuation isn’t driven by its current financial performance; it’s driven by investors’ expectations of future growth — a story, in other words. As the story goes, Tesla’s sales will continue to rise sharply over the next several years as the developed world embraces electric vehicles, until it’s one of the world’s largest and most profitable automakers.
With Tesla possibly poised to profit early next year from the next step in SpaceX’s evolution, Bitcoin will, too, be looking to benefit from a rare occurrence at the start of 2020.
Leading up to the Bitcoin mining reward halving, predictions have been made that the coin could reach as high as $400,000, based on previous iterations of this occurrence.
Well-known trader and financial analyst @Rektcapital recently pointed out interesting price movements before and after the two previous halvings — which, he states, are setting up the May 2020 halvening to see a sharp price spike in Bitcoin through Q1.
Bitcoin tends to retrace prior to its Halvings
Previously, $BTC saw a -38% retrace prior to Halving 2
And a -50% retrace prior to Halving 1
— Rekt Capital (@rektcapital) October 1, 2019
Bitcoin being more scarce in a few month’s time has seen the network hashrate and mining difficulty skyrocket. This, in turn, has previously been seen as a good omen for a price surge in the near future.
Will Tesla be able to profit by the work that Elon Musk is doing with SpaceX? Will the electric car company’s stock rise in a similar manner as Bitcoin’s own price is set to rise in Q1 2020? Let us know what you think!
Do you need trading guidance during this Coronavirus outbreak? BeInCrypto is here to help! Join our Telegram Trading Community for Market Updates, exclusive Trading Signals and a FREE Trading Course! Images courtesy of Shutterstock, Trading View and Twitter.