Here’s why prominent crypto strategist compares Bitcoin (BTC) to Tesla

High time to invest in Bitcoin BTC says Prudential former CEO

Bitcoin (BTC) price is trading near recent all-time highs as investors shift their focus to Ripple (XRP) and their legal issues.

Fundamental analysis: Bitcoin is less volatile than it is perceived

It appears that Bitcoin is not as volatile anymore compared to popular market indexes that touched new peaks amid the pandemic, said Meltem Demirors, head strategist at crypto management firm CoinShares.

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

Demirors compared Bitcoin gains with those of Tesla’s stock to demonstrate his remarks. The carmaker’s stock is up over 676% year-to-date, while Bitcoin has surged around 220% during the same period. Tesla was added to the S&P 500 index on Monday.

“If we look at the astronomical rise in the equities market, bitcoin’s rise actually doesn’t feel so wild,” Demirors added.

After the collapse due to the coronavirus outbreak, unprecedented monetary stimulus from central banks was the only lifeline for global economies and markets. Demirors also pointed out that the bitcoin industry has significantly evolved over the last two years.

Renowned investors Paul Tudor Jones and Stanley Druckenmiller have been voicing their support for Bitcoin for a while now, citing the cryptocurrency’s appeal as a hedge against inflation.

Data from crypto analytics firm Chainalysis showed that major investors that are new to the crypto market have also contributed to Bitcoin’s rally over the past several months.

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

Technical analysis: Hovering near record highs

In what can be seen as a positive development, BTC price is trading above the $23,000 mark as Bitcoin buyers refuse to allow for a correction to take place.

Bitcoin (BTC) daily chart (TradingView)

The price action has been consolidating above $23,000 which is just about 5% from the record highs. Given the magnitude of the recent bullish move, it seems that there’s still room for upside in BTC in the short-term as investors eye $25,000.

Summary

CoinShares chief strategist Meltem Demirors said Bitcoin is less volatile as opposed to other stocks such as Tesla. In the meantime, Bitcoin price is consolidating above $23,000.

The post Here’s why prominent crypto strategist compares Bitcoin (BTC) to Tesla appeared first on Invezz.

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