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On February 8, 2021, Bitcoin reached another milestone as the leading electric vehicles manufacturer Tesla bought the asset worth $1.5 billion. This comes as little surprise as major crypto influencers have predicted long ago that Tesla would eventually buy Bitcoin. The investment comes on the heels of the company’s CEO Elon Musk, who actively posted on Twitter about Dogecoin, a cryptocurrency created just for fun.

The company has also announced that they will accept BTC as payment for their electric cars should buyers choose to pay with the cryptocurrency. Although this action by Musk and Tesla has been anticipated, it came as a shock to the gold bug, and long-term cryptocurrency critic Peter Schiff previously said that Musk was too smart to invest in a worthless asset, such as Bitcoin. He also accused the billionaire entrepreneur of using Dogecoin as a distraction while loading up BTC.

Prior to the investment, Musk tweeted about Dogecoin for weeks, claiming that it was his favorite cryptocurrency. As a result, the fun cryptocurrency has been pumping fast, at one point reaching an 800% increase in 24 hours. This has made both Musk and Dogecoin so popular that the two now appear at the top of Coin Market Cap’s home page. Schiff suspects that Tesla also bought Dogecoin, which is why its CEO has been shilling and pumping it.

The investment is just one out of the many mainstream companies that have invested in the top cryptocurrency. In 2020, so many corporate entities entered the space that Bitcoin worth billions of dollars now sits on corporate balance sheets. The interest from institutional investors is expected to rise as the price continues to surge.

In 2020, an analyst from Citibank, one of the leading banks in the U.S, predicted that Bitcoin could top $300,000 by the end of 2021. Another top bank JP Morgan also forecasts that more institutional investors will go into Bitcoin, and gold investment will suffer as they consider Bitcoin to be digital gold.

After reaching a new all-time high price of roughly $42000 in January, this year, Bitcoin dipped to $30000 and was under $35000 for weeks. However, with the announcement of Tesla’s investment, the top cryptocurrency has been surging fast and breached $48000 before dipping back to $46000.

According to analysis, if the rising price continues to hold, Bitcoin coils will be heading to much higher levels in the coming days, weeks, and months. If the current rate of price appreciation is sustained and institutions continue to flock in, then the asset may be up for its biggest year yet.

Featured image: Forbes.com

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