Feb. 22 – After a tweet from Tesla CEO Elon Musk and a cautionary comment from Treasury Secretary Janet Yellen, tech stocks pulled down the Nasdaq Composite and bitcoin plummeted on Monday. As the big tech companies, Apple, Microsoft and Amazon all declined more than 2 percent, the Nasdaq dropped 2.46 percent, while the S&P 500 closed down 0.77 percent. 27.37 points or 0.087% of the Dow Jones Industrial Average ended the day.Both the Dow and the S&P 500 increased by about 5 percent as of the final week of February, while the Nasdaq grew by 4.5 percent on the month.
The 10-year Treasury yield also rose on Monday to 1.36%, while the 30-year yield touched a one-year high of 2.2%.The price of bitcoin decreased to $54,481.60 after Musk said that the price of both it and ethereum “seem high” in a response to a tweet about the value of the cryptocurrency relative to the gold-backed currency by Peter Schiff, chief market strategist for the brokerage company Euro Pacific Capital.Musk said, “An email saying you have gold is not the same as having gold.
You might as well have crypto,” Money is just information that lets us escape the inconvenience of bartering. The information is subject to latency and error, like all data. The mechanism will evolve to one which minimizes both.Tesla revealed earlier this month that it had invested $1.5 billion in bitcoin and will soon consider some of its products as a payment for the cryptocurrency.
Bitcoin was also identified by Yellen on Monday as highly speculative and inefficient, adding that it is sometimes used for illicit transactions.I don’t think that bitcoin is commonly used as a mechanism of trade,”I don’t think that bitcoin is widely used as a transaction mechanism,” “It’s an extremely inefficient way of conducting transactions and the amount of energy that’s consumed in processing those transactions is staggering.”