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.

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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.

Tesla (blue) Vs. Bitcoin (red) price chart since 2020. Source: Trading View

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.

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.

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.

google bitcoin trends tesla
12-month Google search volume for Tesla and Bitcoin. Source: Google Trends

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.

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