Bitcoin, Tesla and avocados: millennial traders are saying ‘OK boomer’

Published at: Sept. 17, 2020

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.

The avo-ning

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.”

Tags
Bitcoin
Markets
Investments
Stocks
Tesla
Related Posts
MicroStrategy’s Bitcoin treasury exceeds cash held by 80% of S&P 500 non-financial companies
The value of MicroStrategy’s massive Bitcoin (BTC) holdings has surpassed what most S&P 500 companies hold in their cash treasuries. The Nasdaq-listed enterprise software firm purchased an additional 5,050 Bitcoin for about $242.9 million, raising the value of its 114,042 BTC holdings to nearly $5.3 billion. That comes out to be higher than what 80% of non-financial S&P 500 companies hold in their cash coffers, as per data compiled by Bloomberg. Cash spending up among corporations MicroStrategy made buying Bitcoin its official corporate strategy in 2020, with its celebrated CEO, Michael Saylor, calling the move a defense against the U.S. …
Bitcoin / Sept. 15, 2021
JPMorgan turns bullish on Bitcoin citing ‘potential long-term upside’
JPMorgan, the $316 billion investment banking giant, said the potential long-term upside for Bitcoin (BTC) is “considerable.” This new optimistic stance towards the dominant cryptocurrency comes after PayPal allowed its users to buy and sell crypto assets. JP Morgan, from "Bitcoin is a fraud and will blow up" in 2017 to "Bitcoin’s competition with gold" in 2020. We've come a long way. pic.twitter.com/xceabkHaVJ — Krüger (@krugermacro) October 24, 2020 The main factor put forward by JPMorgan’s Global Markets Strategy division is Bitcoin’s competition with gold. The note, obtained by Business Insider, reads: "The potential long-term upside for bitcoin is considerable …
Bitcoin / Oct. 24, 2020
Not bad for 2020: Up 42% in Q4, Bitcoin price outperforms top bank stocks
Historically, traditional market analysts and old school investors tend to look at Bitcoin and other cryptocurrencies with a wary eye, and when crypto pundits attempt to make comparisons between the two these investors say it's an apples to oranges argument. Take, for example, Warren Buffett, who many a time has said Bitcoin is nothing more than a Ponzi scheme as it does not produce anything and therefore has no value. According to these traditionalists, comparing Bitcoin to Apple, Tesla, or a bank stock like JPMorgan is irrational as the latter employ workers, produce products, and generate revenues and dividends which …
Adoption / Nov. 5, 2020
Robinhood FOMO Potential? Bitcoin Pulling a ‘Kodak’ Means 6 Figures
Retail traders on Robinhood have been increasingly seeing “fear of missing out” or FOMO rallies around certain stocks. The latest beneficiary has been the stock price of the renowned camera manufacturer Kodak (KODK) whose stock surged from $2 to $60 in one day. Therefore, given the current climate of economic uncertainty and “infinite QE,” if the optimism around risk-assets flows over to Bitcoin, chances of a similar rally for BTC price — as some analysts are currently predicting — certainly increase. Moreover, following the Federal Reserve’s FOMC meeting on July 29, strategists expect the overall sentiment of investors to recover, …
Bitcoin / July 30, 2020
Missed out on hot crypto stocks in 2021? It paid just to buy Bitcoin and Ethereum, data shows
Bitcoin (BTC) may have fluctuated in price this year, but BTC remains a better play than the biggest crypto stocks. New data currently circulating shows that for all the growth in the industry surrounding Bitcoin, it still pays simply to buy and hold. Stocks fail to compete with BTC, ETH Looking at the stock performance of firms with the largest BTC allocations on their balance sheets, it becomes immediately apparent that it was more profitable to hold BTC than those equities — at least this year. “Buying crypto stocks to outperform coins is hard,” Three Arrows Capital CEO Zhu Su …
Bitcoin / Dec. 22, 2021