Tesla has been an investor’s dream in recent months. The company’s stock price has performed quite well since late last year with eccentric billionaire Elon Musk at its helm. One of the things that makes Tesla such a popular investment is its high-end brand in the world of electric vehicles.
Notably, Tesla’s rally came as bitcoin also surged tremendously, leading many analysts to question whether there are some similarities between the two assets. In August of this year, the Tesla stock price hit a new lifetime high of $2,000 per share after increasing by approximately 46% in just ten days. The bitcoin price has also set a couple of milestones. The bellwether cryptocurrency has charted a steady rally from the psychological $10K level to nearly $19,000 over the past two months.
Well-known analyst and economist Alex Kruger now believes bitcoin could be poised for a parabolic rally. Kruger suggests that the top cryptocurrency could climb to as high as $125,000 within the next 12 months if it ends up mimicking Tesla’s performance.
The Case For $125,000 Bitcoin According To Alex Kruger
In a tweet on November 22, Kruger observed that Tesla kicked off its stellar rally in October last year. After just one month, the asset was just 10% shy of its previous record high, just like bitcoin is right now. If the flagship cryptocurrency can pull off a Tesla-like rally in the next 12 months, it could easily reach $125,000. Kruger noted this potential significant upside for bitcoin while referencing the chart that can be seen below.
The analyst further commented that one of the reasons why bitcoin can actually hit these astronomical levels is because it has become a macro asset. Governments’ response to the pandemic has led to the real rates sinking into the negative territory. Institutional investors have thus started to realize that bitcoin has a unique hedging ability against inflation just like gold, and most of these investors are yet to invest in the cryptocurrency.
Kruger also pointed out some inherent commonalities between bitcoin and Tesla. Besides having multi-year consolidation phases, both assets have had a bull rally spurred by positive developments. In addition, both and Tesla have robust long-term macro tailwinds to help push their growths higher.
Another interesting similarity between bitcoin and Tesla according to Kruger is the fact that they are both cult assets, attracting haters and fans in equal measure.
Looking ahead, bitcoin could hit a price of $125,000 and beyond next year if it could follow the path of Tesla. Kruger highlighted macro trends such as more traditional investors accepting it as a digital version of gold as catalysts that will certainly add more upside to the OG cryptocurrency.