Coinshares: bitcoin’s rally is not crazy compared to Tesla

Source: meltem demirors, Chief Strategic Officer of coinshares, a cryptocurrency asset management company on the financial sector website, believes that bitcoin’s volatility seems to be less dramatic than it used to be, compared with the major market indexes that broke through historical highs during the outbreak. “Everything else has become more volatile,” she said in an interview on Tuesday. As we know, volatility is a relative indicator. In the current environment, bitcoin is actually less volatile than in the past. ” To illustrate this, the strategist compared the rise in bitcoin with the rise in Tesla shares. Tesla shares are up more than 676% so far this year, while bitcoin is up about 220% this year as of midnight Tuesday, according to coin metrics. “If we look at the astronomical rise in the stock market, the rise in bitcoin is actually not that crazy,” demirors said After a sharp fall in early 2020, global stock markets rebounded strongly, driven by unprecedented stimulus measures launched by central banks to maintain the economy running. Demirors added that in addition to the change in investors’ perception of volatility, the bitcoin industry has matured and developed over the past two years. Stanley Druckenmiller and Paul Tudor Jones, prominent hedge fund managers, both invested in bitcoin and highlighted its potential as an inflation hedge. Over the past three months, institutions and wealthy investors have bought 500000 bitcoins, valued at $11.5 billion at Friday’s prices, pushing bitcoin prices more than double over the past three months, according to data firm chainalysis. “In the past, investing in bitcoin brought occupational risk, but not investing in bitcoin now brings occupational risk,” demirors said. In the past nine months, the world has really changed a lot. ”

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