Today, Tesla’s stock value set a new record at $1,027, bringing its market capitalization to $188 billion, and also surpassing Bitcoin’s total market capitalization (BTC) of about $181 billion.
Although Tesla’s stock value and Bitcoin’s price are not interconnected, there is a symbolic comparison between the two since it is the same FOMO investor that drove several Bitcoin raises in the past, it seems to be present in the stock market.
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Recently, Tesla CEO Elon Musk announced plans to continue with the launch of an autonomous semi-trailer truck and analysts speculate that this decision is partially driving the stock rally.
While the hype surrounding the semi-truck may have played a role in Tesla’s price rise today, the entire stock market has been in an uptrend over the past week.
The Nasdaq, a market dominated by FAANG stocks, including Microsoft, Apple, and Microsoft, also continues its recovery above its historical high, despite the sharp 37% drop driven by the Dow Jones Industrial Average (DJIA) coronavirus in March, the Nasdaq has risen over 10% so far this year.
The retail frenzy in the stock market has become so intense that professional traders say they have never seen anything like it in recent decades.
Dennis Dick, a trader at Bright Trading LLC, told Reuters:
„In my 20 years of experience, I’ve never seen retail traders push stocks like they are right now.“
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Bitcoin, by contrast, has not seen as much retail demand since May, the highest rated digital asset experienced a strong upward trend between March and April as the BTC price recovered from $3,600 to $8,000 and finally peaked at $10,440.
However, the remarkable shift in retail demand from risky assets such as Bitcoin to stocks increases uncertainty about BTC in the short and medium term.