Over the last year, the prices of Tesla shares and Shiba Inu (SHIB) tokens have shown a remarkable correlation. While the reason behind this trend is still unclear, experts are now trying to explain why such a relationship exists between these two seemingly unrelated assets.
The primary hypothesis is that investors are turning towards cryptocurrency investments as an alternative to traditional stocks or bonds due to their potential for higher returns and lower volatility.
As more money flows into digital assets, it appears that Tesla’s stock price has also gone up in tandem with these cryptocurrencies.
This phenomenon could be further evidence of institutional interest in cryptocurrency markets, which would indicate that digital asset investments may become increasingly mainstream in the near future.
Elon tweets
One factor that could be driving the correlation between Tesla and cryptocurrencies is Elon Musk’s tweets about meme tokens. The eccentric billionaire loves crypto, thinks it’s the future, and loves to rile up the internet with his social media posts.
Before meme stocks were all the rage on WSB, Tesla was a meme. It’s possible that the correlation between the old meme stocks and current meme tokens in crypto are running parallel for this kind of reason.
Elon is a billionaire more than a hundred times over. Thousands of young people look to him as a financial role model. So if young people are flocking to his company’s stock, it’s not a stretch to think they’re also flocking to the crypto he’s promoting.
The relationship between these three assets may not last forever, but for now, it looks as if investors are taking advantage of this positive correlation to increase their returns.
By combining investments in crypto markets with traditional stocks, investors may be able to diversify their portfolios and achieve higher returns.
A new trend emerges
Over the course of the last month or so, Shiba Inu (SHIB) is tanking while Tesla is pumping in the other direction. HedgeUp (HDUP), a new DeFi project currently in its presale phase, is seeing more of a direct correlation with Tesla than Shiba Inu (SHIB) is seeing.
But why?
Tesla is long since out of the meme stock category. It’s a safe bet. It’s a top tech stock. It’s a member of the S&P 500 and several other ETFs and index funds. It is now a proven company.
HedgeUp (HDUP) is proving that it has the potential to be the Tesla of DeFi. Both companies want to change the world. While Tesla focuses on delivering products that benefit the planet, HedgeUp (HDUP) is looking to change the finance game for everyone by offering retail investors opportunities they’ve never had until now.
It’s only a matter of time before other companies emerge with a similar goal. If you believe in making the world a better place for everyone and that every human being deserves a place at the table, plays like Tesla and HedgeUp (HDUP) are potentially great investments.
Find out more about the HedgeUp (HDUP) presale here:
- Website: https://hedgeup.io/
- Presale: https://app.hedgeup.io/sign-up
- Telegram: https://t.me/HedgeUpChat
- Twitter: https://twitter.com/HedgeUpOfficial
Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency or investing in any projects. Read the full disclosure here.
Photo by Kanchanara on Unsplash
Source: null tx