BTC consolidates, AMC rockets higher and TSLA slumps
By John Shepard
15:40, 4 June 2021
Bitcoin (BTC) is consolidating under the $40,000 level as the coin struggles to hold the uptrend. Yet again, Elon Musk’s tweets are driving the price of cryptocurrencies after the Tesla founder posted a breakup meme with the bitcoin logo and a broken heart.
BTC is trading around the $37,000 level, but the world’s most valuable cryptocurrency may struggle to find large buyers after the recent headwinds of increased government scrutiny.
Dogecoin (DOGE) was higher on the week after news that the Coinbase (COIN) exchange would make the meme cryptocurrency available to retail investors with a $1.2m coin giveaway. The promotion is available to investors who invest $100 in DOGE, and the move could raise further retail awareness and interest in the coin.
AMC stock surges on the week
AMC Entertainment (AMC) stock surged to $70 on the week after another retail investor frenzy took hold in the turnaround movie theatre stock. However, the company’s stock has since pulled back to $50 after Wedbush analyst Alicia Reese said that the firm had made the most of its “meme stock” status by raising equity from stock sales, but prices remained “out of touch” with fundamentals.
Many analysts and commentators are quick to dismiss companies like AMC as “meme stocks” but are hiding from the fact that they failed to spot the long-term low in the stock. The recent stock sales and debt reductions mean that the business is in a stronger position, and the company’s CEO said this week that will not go back to “playing offense” in a hit to short sellers.
TSLA slumps amid lower Chinese orders for the manufacturer's EVs
Tesla (TSLA) stock was back below the $600 level this week after Chinese orders for the company’s vehicles slumped compared to April. The electric vehicle’s net orders in China dropped to around 9,800 in May from over 18,000 in April, according to the report from Reuters.
China is the EV maker's second-largest market after the US and accounts for almost 30% of its sales. Manufacturing electric Model 3 sedans and Model Y cars at its Shanghai plant, Tesla is one of the most popular electric cars producers in China.
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