Bitcoin exploded to a new record high on Monday after Tesla announced it bought around $ 1.5 billion worth of cryptocurrency in January.
The flagship cryptocurrency hit $ 44,900 before the opening bell in New York, indicating expanded profits as traders cheered Wall Street’s fifth largest company into the cryptocurrency sector. Bitcoin bulls expect the price to hit $ 100,000 due to popular demand, especially given the cryptocurrency’s limited supply cap of 21 million units.
Bitcoin hits ATH after Tesla’s BTC launch. Source: BTCUSD on TradingView.comBitcoin hits ATH after Tesla’s BTC launch. Source: BTCUSD on TradingView.com
Tesla involuntarily predicted a similar adoption frenzy in its filing with the Securities and Exchange Commission. The automaker said it has changed its investment policy so that its free cash reserves are used to buy “alternative reserves” such as Bitcoin. It also admitted that it had enough US dollar balances to expand its cryptocurrency portfolio in the future.
“In addition,” added the Tesla filing, “we expect to be accepting Bitcoin as payment for our products in the near future, subject to applicable laws and initially to a limited extent, which we may or may not liquidate upon receipt.” ” ”
Future Bitcoin Projections
Many analysts agreed that Tesla’s bitcoin adoption news confirmed the cryptocurrency’s target price of $ 50,000 in the short term. Mike McGlone, the chief commodities strategist at Bloomberg, reiterated his bullish stance on Bitcoin related to the Tesla News, stating:
“Tesla maybe [the] Catalyst to get Bitcoin Market capitalization at USD 1 trillion. The company’s disclosure that it is investing in Bitcoin and accepting the cryptocurrency for payment is a stepping stone similar to the onboarding of PayPal in October, pointing to about $ 50,000 as the next resistance. “
Alex Krüger, an independent macro analyst, also requested a bitcoin for $ 50,000.
“I’m revising my 2021 BTC Bitcoin Year-end forecast of $ 63,442, ”added another analyst, Cheds.
Bitcoin was trading at $ 43,473 at press time.
