• Tesla (TSLA) has recovered by almost 25% since Jan. 6, outpacing the 16.8% increase in Bitcoin (BTC) price.
• Bitcoin (BTC) is down nearly 65% year-on-year and is eyeing potential growth in the face of declining US inflation and a surge in the price of safe-haven gold.
• A combined chart of BTC/USD and TSLA/USD shows an apparent correlation between the two assets.
Tesla Inc.’s (TSLA) stock price has been in the headlines throughout the past year, with its rapid rise to prominence and subsequent market gains. Despite Tesla CEO Elon Musk’s personal wealth losses, the company has so far recovered by almost 25% since January 6th. This comes at a time of declining US inflation and a surge in the price of safe-haven gold, both of which are likely to contribute to a broader risk asset rebound.
Meanwhile, Bitcoin (BTC) has not fared as well. The most popular cryptocurrency is currently down nearly 65% year-on-year and began the new year with a dip below $16,500. Recent local highs of $19,112 on Bitstamp marked new year-to-date returns of 16.8%, a refreshing change for hodlers, but still behind TSLA in terms of lows to highs as of January 12th.
Analysis of a combined chart of BTC/USD and TSLA/USD reveals an apparent correlation between the two assets. Twitter account Bluntz noted that “crypto has been largely correlated to tech for the last few years but the BTC chart overlayed on TSLA is actually crazy.” This could be seen as a positive sign for both markets, as the correlation may indicate that Bitcoin’s price will continue to rise as Tesla’s stock price increases.
Overall, the market rebound of both Bitcoin and Tesla’s stock price is a welcome change from their respective year-on-year losses. Whether or not the two assets will maintain their apparent correlation in the future remains to be seen, but it’s certainly an interesting development to watch in the months ahead.