Tesla Speculators Likely to Flock to Bitcoin Once Its Price Breaks Above $20,000: Economist

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Sun, 07/12/2020 - 09:23
Alex Dovbnya
Bitcoin and Tesla comparisons just won't stop, and this analyst believes that BTC might also generate massive momentum if it breaks above $20,000
Cover image via stock.adobe.com
Contents

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. 

image by @krugermacro

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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. 

When 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.’ 

image by @krugermacro

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.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.


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