Key points to remember
- The CEO of leading trading app eToro suggests retail investors have been driving Tesla’s 10x gains since early 2020.
- Channel analysts Willy Woo find that Bitcoin’s adoption rate mimics the internet from the 1990s.
- Bitcoin topped Tesla in Google search volume in January.
Share this article
Bitcoin topped Tesla in Google search volume in the first month of 2021. Unprecedented global internet adoption and the strength of retail investors after COVID-19 put Bitcoin in a prime position for a surge in prices. price.
Face to Face: Bitcoin vs. Tesla
Since the start of 2020, Tesla’s percentage gain from $ 88 to a peak of $ 880 on January 8 was 919%.
In comparison, Bitcoin rose 460% and coincidentally peaked on the same day.
During the same time frame, other notable winning stocks were Moderna (NASDAQ: MRNA) and Zoom Video Communications (NASDAQ: ZM), up 530% and 451%, respectively. Both were popular due to COVID-19.
Value investors, commonly referred to by millennial investors as ‘boomers’, have been clearly unhappy with the unprecedented rise in asset prices.
EToro CEO Yoni Assia said this morning via a tweet that there appears to be a direct correlation between the number of Tesla investors and its rise to power.
This is a chart showing the end of day prices of $ TSLA and the number of investors @eToro holding his stock. It seems that there is some correlation between them – @Elon Musk On behalf of our 127,000 users, I would like to invest in $ TSLA to get your point of view on the future … pic.twitter.com/UEUnrGxbwW
– Yoni Assia (@yoniassia) February 1, 2021
If Tesla was a social media network or if the correlation was established with its profits, the graph above would have made perfect sense.
But, the CEO of eToro identified that instead of sales, 127,000 stock investors on the app appeared to have caused the surge. Gabor Gurbacs, Digital Assets Strategist at VanEck Digital Assets and Director of MVIS, tweeted:
“The correlation is a clear indication that You’re here, Bitcoin, esports and investment in innovation is largely retail oriented and I would say “retail first”.
Alternatively, Tesla CEO and World’s Richest Man Elon Musk endorses the Bitcoin hashtag as his status on Twitter.
Bitcoin adoption rate
On a related note, Willy Woo, a leading analyst on the channel, described an analogy in the internet’s rate of adoption with Bitcoin, except that adopting Bitcoin means an investment. According to Woo’s estimate, over the next four years Bitcoin’s user base, represented by the number of unique Bitcoin addresses, will grow to one billion.
In terms of adoption, Bitcoin has roughly the same users as the internet in 1997.
But Bitcoin is growing faster. The next 4 years on the current track will bring Bitcoin users to 1 billion people, which is the equivalent of 2005 for the Internet. pic.twitter.com/Np9yTR3WkL
– Willy Woo (@woonomic) February 1, 2021
Google Trends data for the volume of “Bitcoin” and “Tesla” on the search engine also saw an increase in Bitcoin queries as they hit a new record high of $ 42,000.
While Telsa has led the average search volume since last year, interest in Bitcoin clearly competes with the leading electric vehicle maker. The uncorrelated digital asset may soon become the most preferred asset in the retail military.
Additionally, in the case of Bitcoin, revenue is not a limiting factor for its price; The growing adoption of retail is a net positive for cryptocurrency.
Disclosure: The author owned Bitcoin at the time of publication.
Bitcoin crosses $ 40,000 and approaches Tesla in market capitalization
Bitcoin has just doubled its all-time high of $ 20,000 in three weeks since it first crossed the benchmark, overtaking the US industry titans. Bitcoin is rising at the dawn of a new …
Grayscale follows Tesla in dividing Ethereum shares
Crypto investment firm Grayscale has announced a split of shares in its Ethereum Trust Fund (ETHE), offering eight additional shares for each share currently held by shareholders. The split will occur in …
Bitcoin is now in overbought territory following the end of Elon Musk …
Market players appear to have entered an irrational FOMO state after Tesla and SpaceX CEO Elon Musk suggested he now supports Bitcoin. Bitcoin Soars After Crucial Musk’s Approval Tweeted …