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Zhao stated that despite what many people think, the price of Bitcoin is less unstable when compared to Apple and Tesla.
“If you look at the last two years, if you look at the tech stock price versus the bitcoin price, many of the tech stocks are more volatile than bitcoin. If you look at the data, bitcoin’s more stable than Tesla, bitcoin’s more stable than Apple.”
Furthermore, the CEO of the world’s largest crypto exchange by trading volume also touched on Binance’s confrontation with global regulators. Zhao assured that the exchange would soon “have good news to share.”
Zhao passed his comments on Bitcoin during an interview at the recent Financial Times Crypto and Digital Assets Summit. While speaking, he also likened Chinese tech stocks to Apple and Tesla in terms of volatility. According to the CEO, “many [Chinese tech stocks] [actually] drop by 90%,” even though Bitcoin’s volatility gets more attention.
Why Zhao Opines Apple & Tesla Are More Volatile than Bitcoin
Zhao’s opinion that Bitcoin is much less unstable than Tesla and Apple stock does not seem far-fetched. Over the last few years, there have been significant fluctuations recorded in Tesla’s stock price. When shares of the electric vehicle (EV) manufacturer began to rally at the turn of 2020, TSLA was trading at around $90. Almost two years later, in late November 2021, Tesla stock soared to a record high of $1,243 per share. However, in the subsequent months, the EV maker’s stock price gave up some momentum, declining to $800 at a point. Currently, TSLA is changing hands at around $930.
While Tesla shares experienced a dramatic rise and subsequent retracement, Apple’s volatility was not that considerable. A plausible reason is that the consumer electronics tech giant settled on the market almost 50 years ago. When the global pandemic started, many firms struggled to keep their operations afloat amid waning numbers. Meanwhile, AAPL was on an almost constant upward trajectory during this same period and even afterward. In January of this year, Apple stock attained an all-time high of approximately $183. However, the company’s stock has currently given up some ground and is trading 13% below its peak at around $160.
Despite the stated fluctuations in Apple and Tesla stock, many might still consider Bitcoin more volatile. The world’s leading digital currency is known to swing by double digits in either direction on a regular basis. In addition, compared to AAPL and Tesla, Bitcoin is a relatively new asset, one which traditionally experiences high price fluctuations during early days.
Google & Amazon
Other tech giants like Google (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN) also experienced high volatility during their formative phases. However, both corporations can now boast of size and stability in terms of stock price.