Demirors notes that Bitcoin (BTC) is much more “less volatile” than the Tesla shares (NASDAQ: TSLA). Speaking at CNBC’s “Squawk Box Asia” on Monday, December 21, he added:
“Everything else has become more volatile. As we know, volatility is a relative measure. In the current environment, bitcoin is actually less volatile than it has been in the past.”
Bitcoin’s year-to-date returns currently stand at above 200%. Besides, the world’s largest cryptocurrency has also surged more than 400% from its March 2020 lows. On the other hand, Tesla had a spectacular run on Wall Street becoming the most-valued automobile company with a market cap of over $600 billion.
The TSLA stock price has surged a massive 650% year-to-date as of Monday closing. Talking about the massive run-up in the TSLA stock and the equities market Demirors adds that Bitcoin’s price rally actually “doesn’t feel so wild”. He further noted:
“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.”
Earlier on Sunday, Tesla CEO Elon Musk called Bitcoin “as bs as fiat”, however, also showed curiosity of making ‘large transactions’ in Bitcoin. Probably, Musk might be thinking of converting Tesla’s balance sheet to BTC.
Bitcoin (BTC) Continues to Be Institutions Favorite
Bitcoin remains the top choice for institutional investors who have been pouring millions of dollars into the cryptocurrency over the last few months. On Monday, December 21, MicroStrategy announced an additional investment of $650 million in Bitcoin while buying during the market correction. With the latest purchase, MicroStrategy’s total BTC holdings go above 70,000 BTCs worth $1.125 billion.
On Monday, JPMorgan analysts noted that institutional inflows in Bitcoin funds are key its price rally further. The analysts specifically noted the growth of Grayscale Bitcoin Trust (GBTC) with over $13.3 billion of assets under management. However, later on Monday, Grayscale announced that it is temporarily pausing all investments coming into GBTC.
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