Bitcoin (BTC) Is Less Volatile Than Tesla (TSLA) Stock Says CoinShares’ Analyst

By Bhushan Akolkar
December 22, 2020 Updated December 22, 2020
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Drawing an interesting comparison, CoinShares’ chief strategy officer explains the analogy of volatility by comparing Bitcoin (BTC) with Tesla (TSLA) shares. Both these asset classes have been the top performers this year and favorite among the investors’ community.

Demirors notes that Bitcoin (BTC) is much more “less volatile” than the Tesla shares (NASDAQ: TSLA). Speaking at CNBC’s “Squawk Box Asia” on Monday, December 21, he added:

“Everything else has become more volatile. As we know, volatility is a relative measure. In the current environment, bitcoin is actually less volatile than it has been in the past.”

Bitcoin’s year-to-date returns currently stand at above 200%. Besides, the world’s largest cryptocurrency has also surged more than 400% from its March 2020 lows. On the other hand, Tesla had a spectacular run on Wall Street becoming the most-valued automobile company with a market cap of over $600 billion.

The TSLA stock price has surged a massive 650% year-to-date as of Monday closing. Talking about the massive run-up in the TSLA stock and the equities market Demirors adds that Bitcoin’s price rally actually “doesn’t feel so wild”. He further noted:

“It used to be career risk to get exposure to bitcoin, now it is a career risk to not have exposure to bitcoin. The world has certainly changed a lot over the last nine months.”

Earlier on Sunday, Tesla CEO Elon Musk called Bitcoin “as bs as fiat”, however, also showed curiosity of making ‘large transactions’ in Bitcoin. Probably, Musk might be thinking of converting Tesla’s balance sheet to BTC.

Bitcoin (BTC) Continues to Be Institutions Favorite

Bitcoin remains the top choice for institutional investors who have been pouring millions of dollars into the cryptocurrency over the last few months. On Monday, December 21, MicroStrategy announced an additional investment of $650 million in Bitcoin while buying during the market correction. With the latest purchase, MicroStrategy’s total BTC holdings go above 70,000 BTCs worth $1.125 billion.

On Monday, JPMorgan analysts noted that institutional inflows in Bitcoin funds are key its price rally further. The analysts specifically noted the growth of Grayscale Bitcoin Trust (GBTC) with over $13.3 billion of assets under management. However, later on Monday, Grayscale announced that it is temporarily pausing all investments coming into GBTC.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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