Between Sep. 9 and 16, the price of Bitcoin (BTC) rose by over 11%. Similarly, in the same period, Tesla stock (TSLA) surged from $330.21 to $449.76, by 36.2%.
Millennials love TSLA stock and Bitcoin
Tesla stock and the Bitcoin price have seen an uncanny correlation in recent weeks. The correlation might come from the similarities between BTC price movements and the S&P 500. It also might be related to the fact that millennial traders actively trade both BTC and TSLA.
Bitcoin price falls as Tesla stock price drops in pre-market trading. Source: TradingView
Tesla stock neared its all-time high when Bitcoin surged above $11,000
The day the price of Bitcoin spiked above $11,000 across major cryptocurrency exchanges, Tesla stock price neared its record high.
TSLA slumped since early September after the Financial Times unmasked SoftBank as the Nasdaq whale. Following the report, a market-wide sell-off continued with the Nasdaq falling by 10% in six days.
But after the initial drop, the U.S. stock market began to recover and the Tesla stock price rebounded. Coincidentally, Bitcoin rose from $10,300 to $11,100 at the same time.
Another asset that has seen some correlation with the price of Bitcoin is avocados. The spot price of Mexico City Hass Avocado from Michoacan has moved similar to BTC since June 2018.
One similarity between Bitcoin, avocados and Tesla is that the three are liked by retail traders and millennials, in particular.
The spot price of avocado and Bitcoin. Source: Trading Markets
On Jul. 14, for instance, Bloomberg reported that 10,000 day-traders on Robinhood bought Tesla shares in a single hour at the day’s peak.
Major market data providers are also noticing some similarities between Tesla and Bitcoin. As Cointelegraph reported, TradingView said Tesla and Bitcoin were the most viewed assets in July, as the demand for day trading soared.
The majority of Bitcoin investors are 18 to 34. Source: Coin.dance
The demand for avocados rose in recent months as well alongside Bitcoin and Tesla, according to avocado suppliers. Axarfruit’s manager Álvaro Martínez said:
“The truth is that, during the first months of the pandemic, the demand went crazy and we were overwhelmed with orders. Then, with the massive arrival of Peruvian avocados, prices dropped, as the Andean country shipped smaller volumes to the United States due to it being well supplied by California and Mexico. The drop in prices gave a boost to the demand, which has been higher than in the same period of previous years.”
Where does Bitcoin go from here?
In the short term, traders expect either another test of $10,110 or a breakdown to $10,200.
The Tesla stock price has dropped 2.55% in pre-market trading and it remains to be seen if it would coincide with a BTC price movement once again.
As TSLA stock dipped overnight, the price of Bitcoin dropped from $11,000 to $10,800, recording a 2.5% pullback.
Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said BTC is at a crucial resistance. He said:
“The levels I'm watching on $BTC are structured here. The short term still trending upwards, but on a crucial resistance to break. If $10,750 fails to hold, $10,600 is next, and most likely the area around $10,200. If $10,750 holds, another test of $11,100 seems likely.”