Musk is living up to his reputation as the top stream of bandwagons.
tesla‘s filing with the U.S. Securities and Exchange Commission (SEC) on Monday shows that the company has purchased $1.5 billion worth of bitcoin and will now also accept bitcoin as a form of payment for cars.
Once the news came out, bitcoin pulled up in a straight line, breaking through to a new high of $44,000 before breaking through the $45,000, $4.6 and $47,000 levels in quick succession.
Many analysts expect that Tesla’s big buy of bitcoin could lead a wave of investment from the corporate sector, starting a new round of bitcoin rallies, and that Apple could be the next giant to buy bitcoin. The bulls believe that Bitcoin is going to hit $50,000 by the end of the week.
Coin Price and Stock Price “Conspiracy”
Musk and bitcoin have been “eyeballing” each other for some Time now.
In the last two weeks, Musk has tweeted about bitcoin and dogcoin several times.
On January 29, Musk suddenly and briefly changed his Twitter profile to “Bitcoin,” directly causing the price of bitcoin to rise by more than 14% in half an hour, and at the time, many people were still confused about what he was selling.
A week ago, Musk shared “his story with Bitcoin” on Clubhouse. Musk said at the time that he had missed out on the bitcoin bonanza of the past few years, saying he was a little slow to understand and a little late to realize it, and that he regretted not buying it 8 years ago.
Tesla’s high-profile entry has stirred up a puddle of bitcoin. Analysts expect Tesla’s stock price and the coin’s price to hold up.
Wedbush analyst Dan Ives notes that Tesla is not the first company to make a big purchase of bitcoin assets. Previously, U.S. business services and analytics firm MicroStrategy spent more than $1 billion buying bitcoin back and forth, and its shares, which were being rubbed on the floor, soared as a result.
Ives believes that the acquisition of bitcoin assets, as exemplified by MicroStrategy, will also give more momentum to Tesla stock, and that Tesla’s cryptocurrency exposure will become part of its overall valuation.
Analysts: Wave of Investment Coming from Big Companies?
A large amount of institutional investment has pushed up the price of bitcoin over the past nearly a year. Many analysts believe that Tesla’s entry could attract more investment from large companies, opening up a new wave of upside for the cryptocurrency’s price.
El-Erian, chief economic advisor at Allianz, said that Tesla’s investment in bitcoin will speed up the process of moving the digital currency into the mainstream. Musk’s deeper involvement in bitcoin helps legitimize its status as a real currency and provides a real boost for investors.
Apple could be the next company to buy cryptocurrency and should develop Apple Wallet into a cryptocurrency exchange, according to Mitch Steves, a market analyst at Royal Bank of Canada Capital Markets.
Steves said that if Apple Wallet is developed into a cryptocurrency exchange, it will create a huge growth market.
“The Apple Wallet initiative is clearly a multi-billion dollar opportunity for Apple (with potential annual revenues of over $40 billion and limited R&D resources required),” he wrote in a report to clients.
Companies such as Square and PayPal, as well as exchanges like Coinbase, have confirmed that the transaction model is real business and that Apple would gain immediate market share if it entered the industry, he said. In addition, Apple’s ecosystem would offer a higher level of security relative to its competitors.
Simon Peters, an analyst at online investment platform eToro, said, “We can imagine more reputable companies following Tesla’s lead and accepting bitcoin as a payment method as time goes on.”
Long: It’s Going to Hit $50,000 by the End of the Week
High market sentiment has the bulls believing the cryptocurrency price is going to hit $50,000 by the end of the week.
According to Peters, “The world is moving more and more online, and bitcoin is at the heart of online transactions. With the backing of a multi-billion dollar company, the price of Bitcoin will likely reach $50,000 by the end of the week.”
Konstantin Anisimov, executive director of cryptocurrency exchange CEX.IO, also made an optimistic forecast for the price of bitcoin based on trading data. He said.
Bitcoin’s upward trend will be continued by a new round of growth. We see $48,051 as the target price at the moment, and the coin could rise to $50,000 within this month. the $48,051 figure is based on operational technical analysis. If Tesla leads a wave of bitcoin investments from the corporate sector, then this number will be breached soon.
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