Daniel Ives, a Wedbush analyst, believes that Tesla has a direct connection with bitcoin (BTC), according to a report from CNBC. The statement follows Tesla’s billion-dollar investment whereby the electronic vehicle company purchased BTC worth $1.5 billion.
Several investors have since acquired BTC as part of their portfolio. Even though Tesla CEO Elon Musk’s loyalty seems to align with Dogecoin (DOGE), he has been tweeting about other cryptos as well, including BTC and Ethereum (ETH).
According to Daniel, Tesla has already profited roughly $1 billion since its bitcoin purchase. Despite having realized profits, both Tesla and BTC face their fair share of risks, particularly at the start of this week (Feb 22).
Considering the volatility of BTC, some view the decision as a bad idea considering the plunge it has faced.
On Monday, Feb 22, Tesla’s stock dropped 8.5% to $697.00, with more analysts pointing fingers towards bitcoin as the causative agent. This is the lowest Tesla has treaded since September 2020.
The drop also follows Musk’s replies to Peter Schiff, calling out the Tesla CEO for labeling both fiat and bitcoin as “BS.” In his opinion, Musk considers talking about it and owning it as two different things.
Musk later commented that both ETH and BTC “seem high.” Some suspect this led to the coin dropping to $46,000 before correcting higher to $54,000.
Two weeks after @elonmusk announced that he spent $1.5 billion of shareholder money buying Bitcoin, #Tesla stock entered a bear market, plunging 20% from its all-time high set on Jan. 25th, and 16% since disclosing the #Bitcoin buy. Not an example other CEOs will likely follow! — Peter