Bitcoin retakes a greater market cap than Tesla

Since June 2019, the popular American electric vehicle manufacturer Tesla has seen its stock price rise up in what commentors are calling a bubble. But the bubble may have just popped.

In the last month alone, Tesla stocks (TSLA) have doubled, climbing from $450 to as much as $991 earlier today. This is a rise of 450% since June last year when they were valued at $180. Much of this recent growth came following the announcement of the Tesla CyberTruck, which went on to secure more 250,000 pre-orders in the space of a week.

As it stands, TSLA now sits at just $872, after seeing $100 (or almost 10%) cleaved from its value following a flash crash that occurred just hours ago. Perhaps we just hit peak Tesla.

As is common with any asset experiencing such meteoric growth, market analysts and investors have already begun drawing parallels with Bitcoin (BTC), since both Tesla and Bitcoin have now demonstrated parabolic price action followed by a sudden crash.

This parabolic growth briefly saw Tesla's market capitalization exceed that of Bitcoin. However, the sudden crash has sent its market capitalization falling back to $159 billion, while Bitcoin's gained 3.2% to reach almost $172 billion today. Bitcoin now has a great market cap than Tesla again.

Bitcoin was largely dismissed as a bubble by famous economists back when its price shot up to $20,000 before heading back down south. However, after falling to lows of $4,000, it has since risen back up to $9,450 and is threatening to break $10,000 once again.

While Bitcoin's price may have dropped since 2017, more people continue to use the network than before. It took eight years before 250,000 transactions had been processed on the Bitcoin network. It then took just three years before this number hit 500,000—which happened today—showing a rapid increase in the number of transactions being made daily.

But if hitting Bitcoin's market cap stopped Tesla's stock prices from blowing out of proportion, perhaps Bitcoin is Elon Musk's safe word.