Tesla’s stock is believed to be closely linked to Bitcoin, analyst says

Daniel Ives, analyst at Wedbush, believes that there is a strong link between Bitcoin (BTC) and Tesla.

Both Tesla stock and BTC have faced a massive drop since the start of the week.

Mr. Ives sees Tesla’s electric vehicles as his greatest asset

Daniel Ives, a Wedbush analyst, believes Tesla has a direct connection to Bitcoin (BTC), according to a CNBC report. The statement follows Tesla’s $ 1.5 billion BTC investment.

Several investors have since acquired Profit Secret review as an integral part of their portfolio. Even though the loyalty of Tesla CEO Elon Musk seems to align with Dogecoin (DOGE), he has also tweeted about other cryptocurrencies, including BTC and Ethereum (ETH).

According to Daniel Ives, Tesla has already profited around $ 1 billion since its Bitcoin purchase. Although they have made a profit, both Tesla and BTC face their share of risks, especially given the February 22 sell-offs .

Given the volatility of BTC, some consider this buying decision a bad idea, given the recent plunge in price.

A correlation

On Monday, February 22, Tesla ’s stock fell 8.5% to $ 697.00. More and more analysts are now pointing the finger at Bitcoin as the causal agent. This is the lowest level for Tesla stock since September 2020.

The drop also follows Musk’s responses to Peter Schiff , who criticized Tesla’s CEO for calling both fiats and bitcoins “bullshit”. According to him, Musk considers that talking about gold and owning it are two different things.

Musk then said that ETH and BTC both “look high”. Some suspect this caused the cryptocurrency to drop to $ 46,000 a correction, with price climbing back to $ 54,000.

Nonetheless, the market is still in turmoil, with BTC currently trading at around $ 48,700 on Coinbase. The drop in price on February 23 is thus attributed to the warning of the US Secretary of State for the Treasury, Janet Yellen, who warned investors by telling them that Bitcoin was inefficient to carry out transactions.

On the other hand, some analysts claim that the best solution for most companies is to use BTC as a hedge and reduce the risk on their equity. Ives added that Tesla’s success has more to do with its electric vehicles than its bitcoin.

Elon Musk et Bitcoin

Elon is very talkative when it comes to cryptocurrencies, especially after his investment in bitcoin.

Tesla CEO recently urged major Dogecoin holders to sell their DOGE tokens in order to get more circulating in the market.

Additionally, Elon Musk regularly promoted DOGE on Twitter. Lately, he posted a meme with whose image included rapper Snoop Dogg . Meanwhile, the DOGE went from $ 0.056 to $ 0.0872 in one day.