Tesla and Bitcoin are bubbles, says top Wall Street analyst as TSLA and BTC soars to record highs

YEREVAN (CoinChapter.com) — A top Wall Street analyst called Bitcoin (BTC), and Tesla (TSLA) bubbles as both the financial assets rallied to their respective record highs this week.

Hilary Kramer, an investment analyst and portfolio manager with three decades of experience on Wall Street, said in an interview with Reuters that Tesla’s current market valuation is completely out of whack — just like Bitcoin — since investors have failed to discount the purchase of rented electric cars, available for discount, which undermines and dilute the product.

“That is one more point that we are in a speculative bubble,”

Kramer added.

The statements appeared as Tesla became the first electric carmaker to reach a $1 trillion market valuation. The U.S. giant achieved the said mettle after Hertz, a rental company, announced that it had ordered 100,000 Tesla Model 3 sedans to make its fleet environmentally friendly.

Related: Tesla to take up more Bitcoin to offset Europe’s negative interest rates

Later, TSLA rallied to its record high in a two-day bull run, hitting $1,094.94 a share on Tuesday. The move upside brought the Tesla stock’s year-to-date returns to over 52%, thus lifting the company’s market valuation above $1 trillion.

TSLA price daily chart. Source: TradingView
TSLA price daily chart. Source: TradingView

The bubbly Bitcoin

Meanwhile, Bitcoin, which has lately been trending in sync with TSLA, rebounded Monday after falling below $60,000 during the weekend session. In doing so, the benchmark cryptocurrency rose to as high as $63,726 a token, correcting lower on Tuesday, much like Tesla.

Tesla price daily chart. Source: TradingView
BTC/USD daily price chart. Source: TradingView.com

Nonetheless, the BTC prices have more reasons to back its upside boom. Last week, the cryptocurrency soared to a new record high, just a dollar short of $67,000. Its bull run surfaced in the days leading up to the launch of the first Bitcoin-backed exchange-traded fund (ETF) — dubbed ProShares Bitcoin Strategy — on Wall Street.

Related: ProShares Bitcoin ETF’s debut is the strongest ever on Wall Street; what’s next for BTC?

Bitcoin was up around 112% on a year-to-date (YTD) timeframe. Meanwhile, it traded more than 1,500% higher from its pandemic low below $3,900 in March 2020.

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