Bitcoin

Tesla stocks rise above $ 1,000, exceeding Bitcoin’s market cap

Tesla’s stock today set a new record at $ 1,027, increased its market cap to $ 188 billion, and also surpassed Bitcoin’s total market cap of around 181,000. Millions of dollars.

Although the value of Tesla shares and the price of Bitcoin are not related, There is a symbolic comparison between the two as it is the same investor FOMO that has triggered multiple Bitcoin increases in the past. It appears to be present on the stock exchange.

Tesla's share price hits record high

Tesla stocks rise above $ 1,000, exceeding Bitcoin’s market cap
Tesla stocks rise above $ 1,000, exceeding Bitcoin’s market cap

Tesla’s share price hits a record high. Source: trade view

Will FOMO be expanded to Bitcoin?

Elon Musk, CEO of Tesla, recently announced plans to continue introducing a self-driving tractor-trailer, and analysts speculate that this decision will partially fuel the stock rally.

While the hype surrounding the tractor-trailer may have played a role in Tesla’s price hike today, The entire stock market has seen an upward trend in the past week.

Nasdaq, a market dominated by FAANG stocks like Microsoft, Apple and Microsoft, continues to recover above its all-time high.Despite the abrupt drop of 37% due to the Dow Jones Industrial Average (DJIA) corona virus in March, the Nasdaq has soared more than 10% so far this year.

The retail hype on the stock markets has become so intense that professional traders say they have never seen anything like it in the past few decades.

Dennis Dick, a trader at Bright Trading LLC, told Reuters:

“In my 20 years of experience, I have never seen retailers push stocks the way they do.”

In contrast, Bitcoin has not seen as much retail demand since MayThe high-level digital asset saw a strong upward trend between March and April, when the price of BTC rose from $ 3,600 to $ 8,000 and eventually peaked at $ 10,440.

However, the remarkable shift in retail demand for risky assets such as Bitcoin to equities is increasing uncertainty about BTC in the short and medium term.

Bitcoin spot volume has been falling steadily since May

Bitcoin’s spot volume has been falling steadily since May. Source: Skew

Because retail investors in the United States mainly focus on stocks, traders are wondering where the next source of demand for Bitcoin comes from. Based on Bitcoin’s price history over the past six months, institutions are the most likely short-term source of demand.

According to Fidelity More than a third of institutional investors in the US invest in Bitcoin or Ether.

Coupled with the record influx of institutional funds into the publicly traded cryptocurrency investment vehicle Graycale, it could be concluded that the institutions could lead the next surge in Bitcoin.

The cryptocurrency market needs retail-driven insanity

Since the end of May There was a lack of volatility in the cryptocurrency market, as retail activity on Bitcoin futures and spot markets appears to have shifted to the U.S. stock market.

In order for Bitcoin to record a further sustained increase, the crypto asset must have a higher spot volume from mid-May.

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