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Dollar slightly down and Bitcoin surges, as Tesla claims its $1.5 billion investment in digital assets

BLOG February 9, 2021 at 05:06 am (GMT)
  • Dollar slightly lower over doubts on the recovery speed
  •  Bitcoin tops $47,000 for the first time as Tesla announced $1.5 billion investment in digital asset
  • Morgan Stanley analysts initiate a long position over Russian Ruble

US Dollar was slightly down on Tuesday, hovering near its lowest level, partially due to the doubts over US economic recovery speed. However, a news released today from the Wall Street Journal states that, CDC has confirmed over 10% of all Americans having taken at least one shot of the vaccine. Daily injections have also reached 1.4 million person-times. Among all the states, Alaska champions with 15% vaccine coverage, followed by West Virginia with 12.18%. Biden has promised earlier that, within the first 100 days of his term, he will provide no less than 100 million injections. Thus it seems that, for the mid to long-term perspective over the USD, it is more likely to be pushed down by potential inflation from the $1.9 trillion stimulus package than from worries over the economic recovery.

Bitcoin has again been pushed to the top, refreshing its record high to $47,565.86 after Tesla Inc. said that it had bought $1.5 billion worth of bitcoins as part of its investment policy. Furthermore, the company also expects to receive digital assets as payments for its products “in the near future.” A close rival of Bitcoin – Ethereum – also reached its record level at $1,784.85. FX strategist from IG Securities commented that, “this is a turning point for how we view digital currencies…from here on, bitcoin will be genuinely considered as an asset available for selection by asset managers in their portfolios.”

Elsewhere in the world, Morgan Stanley initiated a long Russian Ruble position with a 6% target increase, against a 50-50 basket of USD and EUR. The reasoning being that, rising oil prices should help the Russian currency and recent sanctions from the US should not pose a material risk to Russia’s macroeconomic outlook.