Bloomberg Intelligence analyst Mike McGlone is tracking the parallels between Tesla (TSLA) and Bitcoin (BTC).
On a new edition of Charting Futures, McGlone says the pair are the most disruptive technologies on the planet – and therefore it’s no surprise to see their values experience massive boom and bust cycles.
“They’re different assets but they’re the world’s most significant disruptive technologies with name recognition all around the world…
[Tesla] was up around 100% on the year and now it’s up 70% or so. On the long-term chart, it trades just like it did in 2013, which was one of the biggest years ever. And by the way, that was the biggest year ever for Bitcoin and it looks to me like you’re seeing a little bit of Bitcoin catching up.
The one thing to remember is these are highly speculative assets, and you get those animal spirits out there. You have Tesla a little bit rich, and it might transfer or tilt a little bit more towards Bitcoin. The significance is, we have bull market uptrends and bull markets that are consolidating.”
McGlone says the launch of Bitcoin futures options at CME are playing a key role in BTC’s strong start to the year. As for the prospect that Bitcoin can rise as a global hedge against economic and political uncertainty, McGlone says the leading cryptocurrency is showing signs of strength as a risk-off diversifier.
“The Bitcoin bid, fueled by declining equity prices amid coronavirus concerns, is indicative of crypto’s growing acceptance as a risk-off diversifier. If the stock market has a more enduring decline, Bitcoin is poised to be a prime beneficiary.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/ParabolStudio
