In a recent tweet, Hedgeye CEO Keith McCullough drew attention to the parallel declines of Tesla and Bitcoin, as both assets crashed by more than 50% since their peak in November 2021. Tesla's stock price currently sits at $181.15, while Bitcoin is trading at $29,293.30.
The two assets reached their peak value within three days of each other, with Tesla's stock losing 55% and Bitcoin falling 57% since then.
As reported by U.Today, Tesla recently unveiled that it holds 9,720 bitcoins and recorded an impairment loss of $34 million due to the cryptocurrency's dwindling value in January.Tesla's audacious decision to invest $1.5 billion in Bitcoin in early 2021 sent shockwaves through the market. Some analysts interpreting the move as a cunning diversification ploy. Others dismissed it as a high-stakes gamble. Despite high expectations, the Bitcoin bet was largely unsuccessful.
Last July, the electric vehicle manufacturer sold most of its Bitcoin holdings, further fueling the debate over the company's rationale for entering the volatile cryptocurrency market.
Despite the harrowing losses sustained by both Tesla and Bitcoin, the two assets have displayed a glimmer of hope in 2023. Tesla's year-to-date performance reveals a 67.56% increase, while Bitcoin has posted a 76.41% gain during the same period.