Bitcoin Price Tops $68k to New Record, While Tesla Stock Plunges 5%
Bitcoin price jumps past $68K to log a fresh all-time high. Tesla stock plunges nearly 5% after Twitter poll leads to share sale.
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Principal Points
- Bitcoin price jumps past $68,000 to a new record early Tuesday as crypto rally regains traction
- Tesla stock plunges almost 5% after Elon Musk’s poll says he should sell 10% of his TSLA shares
Bitcoin Jumps to a Fresh Record High of $68,480
The price of bitcoin, the leading cryptocurrency, rose to a fresh record high early Tuesday. More precisely, bitcoin jumped to a session high of $68,480 amid a broad-based crypto market rally. This said, the original digital asset surpassed its previous record of $67,000 set in late October.
Alongside the rallying price of the orange coin, the entire cryptocurrency market extended its gains. As a result, all cryptos, collectively, climbed to a record high valuation of over $3 trillion. Not only that, but other major tokens also contributed by setting record highs.
Ether, for example, gained 12% over the past week and this morning made a new record of $4,840 per coin. The Ethereum token is the second-largest crypto asset in the market and is now worth a staggering $570 billion.
Bitcoin, on the other hand, is valued at almost $1.3 trillion, or about 43% of the entire crypto market. At this valuation level, bitcoin is bigger than Tesla, which sits on a market cap of roughly $1.2 trillion.
Tesla Stock Plunges 5% after Musk’s Twitter Poll Says Sell
Speaking of Tesla, the electric-vehicle maker lost 4.8% of its value yesterday after Elon Musk’s poll said he should sell stock. In detail, Tesla shares were rattled Monday after a weekend Twitter poll decided Mr. Musk should sell 10% of his stock.
Against this backdrop, Tesla stock hovers about 1% lower in pre-market trading early Tuesday. Still, some analysts expected the stock to nosedive even deeper than it did. That said, 10% of Elon Musk’s Tesla holdings are equal to about $20 billion. He owns roughly 20% of the company, or slightly over $200 billion.
In continuation of the stock selloff on Monday, some investors say now could be a good time to buy the dip. Tesla has been on a tear lately. This year alone, the EV maker is up more than 60% to the current market price of $1,161 per share.
What to Watch in the Markets?
In the meantime, the wider financial markets on Tuesday are looking relatively stable and trading sideways. US stock futures, for example, are floating slightly in negative territory. Stocks across the board, however, rallied to new all-time highs on Monday.
More specifically, the S&P500 secured its eight consecutive session with a record high closing. The other two major benchmarks, the 30-stock Dow Jones and the tech-heavy Nasdaq Composite, also closed at records.
Coming later in the week, traders and investors shift their focus on Wednesday’s US inflation report. The CPI numbers, in particular, will show whether consumer prices stayed high in October.
Economic Data Coming Up Today (EST times)
On Tuesday, market participants will be monitoring the PPI report at 08:30 am. Later, Federal Reserve Chairman Jerome Powell will speak. He will be joined by ECB President Christine Lagarde and BoE Governor Andrew Bailey.