An analyst going by the name Daniel Ives from Wedbush believes that there is a special connection between Tesla’s share and Bitcoin. The statement didn’t come with solid proof, but with some suspicion following Elon Musk’s affection for cryptocurrency and especially Bitcoin. On an elevated note, the past few interactions that Elon Musk has had with Bitcoin and cryptocurrency, in general, depicts the same scenario. He did support Dogecoin in the past and have poured about $1.5 billion investment into purchasing Bitcoin.
What did the Arguments made by Daniel Ives Point at?
The only correlation found by this aspiring analyst seems to be in the direct fall of Tesla and Bitcoin in the market. When Bitcoin took downward flight in the recent crypto market volatility events, Tesla’s shares were shaken in a pretty tough manner. But when Bitcoin rebounded, so did Tesla’s shares; that is why a direct link is supposed to be in place regarding Tesla and Bitcoin.
Daniel’s further arguments include that after pouring about $1.5 billion into buying Bitcoin, Tesla has already earned $1 billion in profit on their so calculated investment. But even after that, both Tesla and Bitcoin are in a fair share of risk following the crypto market and its non-consistent attitude at the end of the week or days.
Correlation
Another finding that has come to the surface points towards the recent stock drop for Tesla, which was at $697 and did drop by 8.5%. This has led to other analysts coming out with theories of their own that this is happening due to the Bitcoin price drop, and that is the absolute correlation between the two right there.
Another tweet by Musk has shown a direct affection for cryptocurrency, stating that both Ethereum and Bitcoin are doing fine, and right after that, Bitcoin’s price dropped to almost $46k before rebounding back to $54k. It might be Musk’s interest in cryptocurrency that is making the crypto market go crazy, or so various analysts think it at the moment, but still, the crypto market and Bitcoin seems to be in turmoil. The factual evidence tying Tesla and Bitcoin in a direct investment relationship is missing; who knows, it might turn up in the future, but till then, these are simply fleeting arguments and nothing more.