Bitcoin just hit a new all-time high at $ 49,400, despite the consolidation of the Ethereum price. The leading cryptocurrency has hit this new high after spending most of the past week in the $ 47,000 area.
Bitcoin is rising due to the continued institutional support of the coin.
Tesla announced last Monday that it held a significant portion of the cryptocurrency it bought to hedge its cash position and provide liquidity for its intention to accept BTC payments.
Related Reading: Wall Street Veteran Kickstart’s Own Bitcoin Fund with a $ 25M investment
Institutional support to increase Bitcoin demand
Raoul Pal, managing director of Real Vision and former head of hedge fund sales for Goldman Sachs in Europe, stated that the introduction of institutions like Tesla will create a recursive feedback loop that will fuel demand for bitcoin:
“Remember that as BTC’s market capitalization increases, more institutions will be forced to do so. The more institutions take over, the more the others have to do and the harder it is for regulators to stop it. A perfect reflection loop where the little guy rules everything. “
Remember that as BTC’s market capitalization increases, more institutions will be forced to do so. The more institutions take over, the more the others have to do and the harder it is for regulators to stop it.
A perfect reflection loop where the little guy rules everything.
Bravo everyone!
– Raoul Pal (@RaoulGMI) February 14, 2021
For example, news that Tesla bought Bitcoin to diversify its cash portfolio has sparked discussions about the cryptocurrency with other companies in the US. For example, Twitter’s CFO stated in a recent CNBC interview that they deal with Bitcoin and even pay salaries in the cryptocurrency.
Bitcoin’s specs may also indicate that there is still room for higher movements.
“PlanB,” a BTC-focused analyst, noted that the cryptocurrency’s relative strength index is on a similar path as in the previous cycle. Should history rhyme, there is still room for bitcoin to stretch up before it is corrected.
#bitcoin looks strong .. RSI 90🚀 pic.twitter.com/eFJbBtACsa
– PlanB (@ $ 100 trillion) February 13, 2021
Related Topics: 3 Bitcoin On Chain Trends Show A Macro Bull Market Is Brewing
Selected image from TradingView.com’s Unsplash chart. Price tags: xbtusd, btcusd, btcusdt Bitcoin sets new all-time high at $ 49,400
