Here's why prominent crypto strategist compares Bitcoin (BTC) to Tesla

Bitcoin (BTC) price is trading near recent all-time highs as investors shift their focus to Ripple (XRP) and their legal issues.

Fundamental analysis: Bitcoin is less volatile than it is perceived

It appears that Bitcoin is not as volatile anymore compared to popular market indexes that touched new peaks amid the pandemic, said Meltem Demirors, head strategist at crypto management firm CoinShares. 

Demirors compared Bitcoin gains with those of Tesla’s stock to demonstrate his remarks. The carmaker’s stock is up over 676% year-to-date, while Bitcoin has surged around 220% during the same period. Tesla was added to the S&P 500 index on Monday. 

After the collapse due to the coronavirus outbreak, unprecedented monetary stimulus from central banks was the only lifeline for global economies and markets. Demirors also pointed out that the bitcoin industry has significantly evolved over the last two years. 

Renowned investors Paul Tudor Jones and Stanley Druckenmiller have been voicing their support for Bitcoin for a while now, citing the cryptocurrency’s appeal as a hedge against inflation. 

Data from crypto analytics firm Chainalysis showed that major investors that are new to the crypto market have also contributed to Bitcoin’s rally over the past several months. 

Technical analysis: Hovering near record highs

In what can be seen as a positive development, BTC price is trading above the $23,000 mark as Bitcoin buyers refuse to allow for a correction to take place. 

The price action has been consolidating above $23,000 which is just about 5% from the record highs. Given the magnitude of the recent bullish move, it seems that there’s still room for upside in BTC in the short-term as investors eye $25,000.

Summary

CoinShares chief strategist Meltem Demirors said Bitcoin is less volatile as opposed to other stocks such as Tesla. In the meantime, Bitcoin price is consolidating above $23,000.