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Tesla stock price mimics Bitcoin $20K run in 2017



Tesla stock ($TSLA) is sending waves across the market with its price exploding by over 300% since June 2019. The stock has maintained the same upward trajectory in the New Year and has doubled in the past 8 weeks alone. Moreover, the stock has recorded some enormous daily price rises uncommon in the financial markets. The share surged by over 20% on Monday resulting in one of the most shocking single day price increases. Consequently, this rapid rise in the Tesla stock price has been compared to that of Bitcoin during its crazy 2017 bull run when it peaked at $20,000.

Now, analysts and commentators are suggesting that the Tesla stock may soon fall off a cliff in a similar fashion to Bitcoin. These suggestions are not without reason as market data shows the 2 assets are on a similar trajectory and $TSLA is currently at its peak.

Crypto venture capitalist Mike Novogratz collated the market data revealing that $TSLA is currently mimicking Bitcoin’s run in 2017.

BTC 2017 vs TSLA now

BTC 2017 vs $TSLA now

The extent of correlation between the two assets become clear by placing the BTC/USD 2017 price action curve on top of $TSLA price run from 2019. Interestingly, the chart reveals that Bitcoin took almost the same amount of time to rise from $1,000 to $20,000 as did Tesla to hit its current peak of $780.

The similarities do not stop there as both assets are now experiencing a surge in enthusiasm with Tesla 40% monthly gains in January outdoing Bitcoin’s similarly impressive 35%.

However, what remains unclear is the future direction of $TSLA price with observers expecting it to follow in Bitcoin’s 2018 direction by way of an enormous correction. According to commentators, Tesla has already reached its peak similar to Bitcoin in December 2017 and should be headed for a sharp decline.

This has however not stopped people from buying into the stock at current levels which is incredibly reminiscent to the influx of new investors who were buying into Bitcoin at the top. Bitcoiner Remy Buxaplenty took to twitter to warn people about buying Tesla at the current price referencing Robinhood’s data that shows over 4,000 traders bought $TSLA for the first time at prices above $700.

During an interview with Bloomberg, Novogratz agreed with these sentiments by stating that his intention of sharing the chart was to warn people that the Tesla stock is a bubble right now saying

Tesla feels like Bitcoin. It’s not a fundamental story — any bit of good news will shoot it up. There’s a Tesla bubble going on — there’s no doubt about it. Bubbles happen around things that fundamentally change the world.

He might be proven right if Tesla follows through mimicking Bitcoin’s run since data shows that it is due for quite a huge reversal.

One man who wouldn’t be surprised by such a turn of events is Tesla CEO, Elon Musk. Being a great Bitcoin fan, he has seen it all before.

Image courtesy of Pixabay



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