Bitcoin has eclipsed Tesla’s (TSLA) stock performance over the past five years, marking a significant milestone in the crypto’s journey. While Bitcoin soared over 1,180%, Tesla’s stock lagged at an 806% increase, according to TradingView data.
In recent performance, Bitcoin’s dominance has been even more pronounced. Over the past year, Bitcoin surged by 139%, while Tesla saw a decline of over 11%. Year-to-date figures paint a similar picture, with Bitcoin up by 49%, contrasting with Tesla’s stock price plummeting by 42%.
This exceptional performance has propelled Bitcoin to the ranks of the world’s top assets, now boasting a market capitalization of $1.3 trillion. Surpassing giants like Meta Platforms, Berkshire Hathaway, Visa, and JPMorgan Chase, Bitcoin now stands as the ninth-largest asset globally.
Tesla’s role in Bitcoin’s narrative cannot be understated. The company made headlines in February 2021 when it invested over $1.5 billion in Bitcoin, which signaled institutional acceptance of the crypto. However, Tesla’s subsequent divestment, including a substantial sale of its holdings in the second quarter of 2022, led to missed opportunities, highlighting the importance of strategic investment decisions in the volatile crypto market.
Had Tesla retained its Bitcoin holdings, it could have potentially reaped a staggering $1.27 billion in profit, representing an 84% increase on its initial investment at current price levels. This significant potential for profit underscores the allure of Bitcoin’s outperformance and its role in the financial landscape.
The rise of Bitcoin Exchange-Traded Funds (ETFs) in the United States has played a pivotal role in Bitcoin’s ascent. 10 approved ETFs contributed to a 60% surge in Bitcoin’s price this year. This insight into the role of ETFs in establishing Bitcoin as a legitimate asset class provides a deeper understanding of market dynamics.
According to Dune, the cumulative on-chain holdings of these ten Bitcoin ETFs have surpassed 835,000 BTC, equating to over $55.1 billion. As Bitcoin continues to assert its dominance and institutional adoption grows, its position in the global financial landscape appears increasingly secure.
