Both Bitcoin and Tesla stock have benefitted from each other’s individual volatility to date with 2020 marking a historic year for both assets.

The cryptocurrency ecosystem is known to be a very volatile space with Bitcoin’s volatility causing skepticism amongst some groups of investors. While many people are familiar with Bitcoin volatility, not so many are aware of the volatility that abounds in the stock market, but CoinShares Strategist, Meltem Demirors has taken her time to highlight this. According to an interview Demirors had with CNBC’s “Squawk Box,” she pointed out that when compared to major market indexes that breached record highs despite the Covid-19 economic fallout, bitcoin now appears “less volatile” than before. She compared the gains Bitcoin has recorded in 2020 thus far with that of the electric vehicle maker Tesla Inc (NASDAQ: TSLA) and pointed out the huge gap in both.

“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.” She went on further to say that “If we look at the astronomical rise in the equities market, bitcoin’s rise actually doesn’t feel so wild.” This is best highlighted by considering the numbers.

With Bitcoin opening the year at $7203, its current price of $23 473,10 according to CoinMarketCap showed that the premier digital currency has surged 326% year to date. While this growth is cataclysmic, Tesla has even performed better as it has surged by over 700% so far in 2020. On January 2, 2020 each TSLA shares were worth $86.05, and with Tesla today’s price of around $635, it implies that the stock has surged by 738%, dwarfing Bitcoin’s 326% gain.

2020 Is Significant for Both Bitcoin and Tesla

Both Bitcoin and Tesla stock have benefitted from each other’s individual volatility to date with 2020 marking a historic year for both assets. Bitcoin’s volatility saw it hit a new all-time high above $24,000 in December, beating the earlier recorded it set in December 2017, exactly three years ago.

Tesla also beat many analysts’ expectations as its growth for the past 5 quarters and its increasing market capitalization owing to boosted investors embrace saw it get added to the S&P 500 Index (INDEXSP: .INX) on Monday, December 21.

Both Bitcoin and Tesla shares represent a highly recommended digital currency and an asset to hold respectively, due to their current annual gains and prospective future growth. Owing to this, Demirors noted that “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.”

Bitcoin News, Business News, Cryptocurrency news, Market News, News

Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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