Tesla Rebound Outpaces Bitcoin as Risk Assets Surge Amid Inflation

• Tesla (TSLA) has recovered by almost 25% since Jan 6.
• Bitcoin (BTC) is up 16% in 2023, but has seen a 65% loss year-on-year.
• The stage is set for a broader risk asset rebound with declining inflation in the US and a surge in the price of safe-haven gold.

Tesla Inc. has been in the headlines throughout 2022 as its rapid rise to prominence and stock price gains steadily unwound. Despite CEO Elon Musk’s personal wealth losses, Tesla (TSLA) has so far recovered by almost 25% since Jan. 6. This is largely due to an atmosphere of declining inflation in the United States as well as a surge in the price of safe-haven gold.

On the other hand, Bitcoin (BTC) is currently up 16% in 2023, but has seen a 65% loss year-on-year. This is a far cry from its all-time-high of $20,948 in February of 2021. However, BTC is still playing catch-up to TSLA, as the stock has so far staged a stronger rebound.

The current market conditions are ripe for a broader risk asset rebound. Investors are beginning to look beyond Bitcoin to other forms of risk-on assets, and with the US Federal Reserve’s inflation targets set to rise, there is much potential for further gains. The combination of increasing inflation and the surge in the price of safe-haven gold has created an environment where investors can look to other risk-on assets for potential gains.

Given this backdrop, it is no surprise that Tesla has been able to stage a strong recovery, while Bitcoin is attempting to gain back the ground it lost in the previous year. It is a game of cat and mouse between the two, and it is yet to be seen who will come out on top. However, it is clear that Tesla has so far managed to turn the tables on Bitcoin, and its recovery in 2023 has outpaced the cryptocurrency’s price comeback.