Elon Musk Investment Drives Bitcoin Price Past $48,000
· Tesla’s investment in Bitcoin drives the price to $48,200, making it the new all-time high.
· The electric car company announced it had invested $1.5 billion in Bitcoin.
· The company’s investment is linked to the fear of missing out (FOMO).
Bitcoin’s Price Rises Above $48,000
On February 9, the crypto market saw an enormous surge in the price of Bitcoin as it hit $48,000. Prior to this move, bitcoin enthusiasts had already predicted a rally for BTC after it broke past the $40,000 resistance line. However, this recent spike was due to the information released following Tesla’s $1.5 billion investment in BTC.
This was revealed in Tesla’s 2020 annual report after it informed the SEC of the investment. Tesla’s investment in Bitcoin was linked to the Fear of Missing out (FOMO); which also drove Elon, the CEO, to invest $19.384 billion in Bitcoin towards the end of the fourth quarter 2020.
According to Michael Saylor, “has de-risked” the purchase of Bitcoin by large investors and companies. He further noted that the investment would also drive the “digital transformation of corporate balance sheets.” Yesterday, crypto analyst, Lark Davis, commented that bitcoin recorded its highest bullish daily candle of about $8,662.
Where Would Bitcoin Price Go Next?
Crypto analysts think it is impossible to tell how high price would go – even though many had predicted a rally for the cryptocurrency. CEO of crypto exchange Germini, Tyler Winklevoss, said jokingly that the price of Bitcoin is on its way to Mars.
Musk’s interest in Bitcoin will get it more acceptance from corporations, retail investors and all who might have feared investing in Bitcoin. Many crypto followers believe that it could also drive price to $50,000.
Much energy is building up around the crypto market and enthusiasts since the news of Tesla’s fund commitment. The next move of Bitcoin could be hard to decide, but many believe the investment has made way for greater acceptance.