Bitcoin (BTC) held $65,000 throughout November 8 when big gains appeared to be unaffected by a 5% drop in Tesla (TSLA) shares at the opening of Wall Street.
1 hour BTC/USD light chart (bit print). Source: TradingView
Bitcoin outperforms Tesla in market capitalization
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD fell around $900 to $65,500 after hitting $66,433 on Bitstamp.
The immediate success was dwarfed by the news that Tesla CEO Elon Musk will sell 10% of his Tesla stock for $23 billion simply because Twitter users voted for him.
TSLA 1-hour light chart. Source: TradingView
Markets reacted cautiously, with TSLA initially opening at $1,150 after closing at $1,221 on November 5, followed by a slight improvement.
Aside from nine months before the day Tesla bought $1.5 billion worth of bitcoin to balance, Musk’s move had unintended consequences — Bitcoin has outstripped Tesla’s market value.
Company ranking by market capitalization as of November 8. Source: Companiesmarketcap.com
Michael Saylor, CEO of MicroStrategy, responded to Musk’s decision: “If diversification is the goal, an alternative strategy is to consider shifting the TSLA balance sheet to Bitcoin and buying $25 billion in BTC.”
“This will provide diversification, inflation protection, and other benefits to all tax-conscious investors.”
It’s not clear what Musk will do with the proceeds from the stock sale, which he says will be the only taxable event because he doesn’t receive a salary from Tesla.
Cryptocurrency market cap reflects record highs in Ethereum
Meanwhile, the new all-time highs for Ether (ETH) dominated the big altcoins, while other coins showed steady daily progress.
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ETH/USD 1 hour light chart (bit print). Source: TradingView
The largest cryptocurrency by market cap reached $4,768, while other coins showed steady daily gains, helping push the total cryptocurrency market cap above $3 trillion for the first time.
By comparison, last November’s estimate was just $400 billion.
Meanwhile, “$3 trillion is still small compared to other markets,” said Michael van de Poppe, a Cointelegraph contributor.
“The real acceleration of this cycle is yet to come.”
