Two of the hottest investing stories of 2020 was the insane rise of both Bitcoin and Tesla Inc 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 JPM, Mastercard Inc MA and Visa Inc 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 TCEHY and Alibaba Group Holding 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 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 GBTC is up 8% to $47.42 Thursday and has gained over 380% over the past year.
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