Today, Tesla shares reached a new all-time high of $ 1,027, bringing the market value to $ 188 billion and also exceeding the total market value of Bitcoin (BTC), which varies from $ 181 billion.

Although Tesla’s share price and Bitcoin’s price do not correlate, it is a symbolic comparison between them, for example, the same FOMO investor, who has previously pushed a lot of Bitcoin leaps, seems to have been present in the stock market.

Will FOMO apply bitcoins?
Recently, Tesla CEO Elon Musk announced plans to move forward with the release of an independent semi-trailer, and analysts suggest that this decision is partially contributing to stock growth.

While the noise around the semi-trailer may have played a role in raising Tesla’s price today, the entire stock market was bullish last week.

The Nasdaq stock market, dominated by FAANG shares, including Microsoft, Apple and Microsoft, continues to rise all the time. Despite a sudden fall caused by a 37% corona virus from the Dow Jones Industrial Average (DJIA) in March, the Nasdaq rose more than 10%.

The frenzy of retailing around the stock market has become so strong that professional traders say they haven’t seen anything like it in recent decades.

Dennis Dick, a Bright Trading LLC trader, told Reuters:

“Over the 20 years I’ve experienced, I’ve never seen retailers pay stocks as they do now.”

Bitcoin, on the other hand, has not seen much demand for retail since May. The highest-ranked digital asset saw a strong bullish trend from March to April, when the BTC price rose from $ 3600 to $ 8000 and finally reached $ 10,440.

However, a noticeable change in the demand for retailers for risky assets, such as Bitcoin, increases uncertainty about BTC in the short and medium term.

Since retailers in the US are largely stock focused, traders are wondering about the next source of demand for bitcoins. Based on the dynamics of bitcoin prices over the past six months, the most likely short-term source of demand is institutions.

According to Fidelity, more than a third of institutional investors in the United States invest in either bitcoins or ethers.

Combine this with a record high inflow of institutional funds into Bitcoin Graycale, a publicly traded investment instrument, and we can conclude that institutions can lead to the next growth of Bitcoin.

Cryptocurrency Market Needs Retail Madness
Since the end of May, there has been instability in the cryptocurrency market as retail activity in the Bitcoin futures and spot markets has moved to the US stock market.

For Bitcoin to begin a new sustainable recovery, cryptocurrency needs to see higher spot size levels, as seen in mid-May.

Source: CoinTelegraph

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