Tesla Speculators Likely to Flock to Bitcoin Once Its Price Breaks Above $20,000: Economist
Cryptocurrency trader and reputable economist Alex Krüger predicts that Bitcoin (BTC) will look similar to Tesla (TSLA) if it eventually breaks above its current all-time high of $20,000.
When such huge breakouts occur, speculative fervor tends to take over fundamentals, driving wild price moves.
Elon Musk’s wild ride
As reported by U.Today, such Tesla comparisons were all over the place in early 2020 when the stock of the Elon Musk-helmed company surged 130 percent to roughly $970.
Krüger echoes a myriad of other analysts by singling out the launch of Tesla's first gigafactory in Shanghai as the key event that lit the powder keg.
After enduring a brutal 64 percent correction, the electric carmaker resumed its monstrous price rally in late March.
On June 10, Tesla reached yet another all-time high of $1,544, making Musk the seventh richest person in the world. The stock is currently up 263 percent from its 2020 bottom.
Alex DovbnyaWhen Tesla became XRP
This euphoria makes Krüger believe that Tesla is a bubble that is reminiscent of XRP in early 2018, but at least it’s inflated by ‘cool cars.’
Earlier this month, former hedge fund manager Mike Novogratz opined that ‘story stocks’ in the likes of Tesla and Beyond Meat were the biggest competitors of Bitcoin whose price action has been excruciatingly boring for the past month.
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