Tesla Motors, Inc. (NASDAQ:TSLA), Alibaba (NYSE:BABA) – Bitcoin Vs. Tesla: Crypto’s Rapid Rise Aims To Top EV Maker’s Market Value

2 mins read

Two of the hottest investing stories of 2020 was the insane rise of both Bitcoin and Tesla Inc (NASDAQ: TSLA). Neither show signs of slowing down in 2021 and continue to climb the ladder in terms of value.

What Happened: Bitcoin briefly passed the value of Tesla on Thursday morning.

Bitcoin had a market capitalization of $717 billion, which would make the cryptocurrency the sixth most valuable company in the world according to AssetDash if it was a publicly-traded company.

Tesla took back the sixth position a short time later with shares up 4% to $788.60 in early Thursday trading.

Related Link: 8 Stocks To Play Bitcoin’s Resurgence

Why It’s Important: The increase in the value of Bitcoin has sent the cryptocurrency above some of the most well-known financial companies in the world.

In 2020, Bitcoin passed JPMorgan Chase (NYSE: JPM), Mastercard Inc (NASDAQ: MA) and Visa Inc (NASDAQ: V). The crypto recently passed Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B), the company of the legendary Warren Buffett who once called Bitcoin “rat poison.”

In 2021, Bitcoin has already moved up two placed in the top 10 list with a possible third if it can move past Tesla.

The move up the ladder comes with the surge in Bitcoin and also the shrinking valuation in two Chinese stocks. Tencent (Pink: TCEHY) and Alibaba Group Holding (NASDAQ: BABA) fell three places this week combined.

What’s Next: If Bitcoin can pass Tesla again, it would have its eyes next on technology giant Facebook Inc (NASDAQ: FB).

Facebook has a valuation of $769.4 billion. With 18,593,631 Bitcoin currently out, the price of the cryptocurrency would have to rise to around $41,380 to pass Facebook.

Bitcoin will need to hit around $40,172 to keep up with Tesla’s Thursday rise. 

Price Action: Bitcoin trades around $38,540 at publication time. The Grayscale Bitcoin Trust (OTC: GBTC) is up 8% to $47.42 Thursday and has gained over 380% over the past year.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.