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Bitcoin retains $65K after Elon Musk sell-off sees BTC pass Tesla market cap

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Bitcoin (BTC) was trading at $65K on Nov. 8, with huge gains seemingly unaffected by Tesla (TSLA) shares falling 5% on Wall Street.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin surpasses Tesla in terms of market capitalization

After reaching highs of $66,433 on Bitstamp, data showed BTC/USD down roughly $900 at $65,500.

The revelation that Tesla CEO Elon Musk will sell 10% of his Tesla stock, valued at $23 billion, tamped down the company’s overnight boom. He did it only because Twitter people voted for him to.

TSLA 1-hour candle chart. Source: TradingView

Markets responded warily, with TSLA starting at $1,150 after closing at $1,221 on November 5th, before recovering somewhat.

Apart from the fact that it was nine months ago that Tesla bought $1.5 billion in Bitcoin for its balance sheet, Musk’s decision had an unanticipated impact. The market capitalization of Bitcoin has surpassed that of Tesla.

Company market cap rankings as of Nov. 8. Source: Companiesmarketcap.com

In the meanwhile, Michael Saylor, CEO of MicroStrategy, reacted to Musk’s plan by saying, “If the aim is diversification, another option to explore is changing the TSLA balance sheet to a Bitcoin Standard and acquiring $25 billion in BTC”.

“In a tax-efficient manner, this would provide diversification, inflation protection, and more upside for all investors.”

It’s unclear what Musk plans to do with the funds from the stock sale, which he claims would be his sole taxable event because he doesn’t get paid by Tesla.

Crypto market cap emulates Ethereum all-time highs

Meanwhile, fresh all-time highs for Ether (ETH) dominated major cryptocurrencies, while other tokens showed little movement on a daily basis.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

The largest altcoin by market cap reached $4,768 per day, while other coins remained unchanged, helping to push the whole crypto market worth beyond $3 trillion for the first time.

The maximum was only $400 billion in November of last year.

Meanwhile, Michal van de Poppe remarked, “$3 trillion is still not much compared to other markets”.

“The true acceleration of this cycle has yet to arrive.”

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