FILE PHOTO: SpaceX owner and Tesla CEO Elon Musk arrives on the red carpet for the automobile awards "Das Goldene Lenkrad" (The golden steering wheel) given by a German newspaper in Berlin, Germany, November 12, 2019. REUTERS/Hannibal Hanschke/File Photo
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Bitcoin explodes above $ 44,000 after Tesla buys BTC

Bitcoin skyrocketed to a new record on Monday after Tesla revealed that it had acquired about $ 1.5 billion worth of cryptocurrencies in January.

The flagship cryptocurrency reached $ 44,900 before the opening of trading inNew York, indicating significant gains as traders rejoiced at the entry of wall street’s fifth-largest firm into the cryptocurrency sector. Bitcoin bulls expect the mass demand price to hit $ 100,000, especially given the cryptocurrency‘s limited supply of 21 million units.

Bitcoin reaches ATH after accepting Tesla BTC. Source: BTCUSD on

Bitcoin reaches ATH after accepting Tesla BTC. Source: BTCUSD on

Tesla unwittingly predicted a similar surge in adoption in its filing with the securities and exchange Commission. The automaker said it has changed its investment policy to use its free cash reserves to buy “alternative reserve assets” such as bitcoin. He also admitted that he has enough dollars on his balance sheet to expand his cryptocurrency portfolio in the future.

“Moreover —” Tesla’s filing added — ” we expect to begin accepting bitcoin as a form of payment for our products in the near future, in accordance with current legislation and initially on a limited basis, which we may or may not eliminate. upon receipt. ‘

Bitcoin predictions for the future

Many analysts agreed that the news of Tesla’s bitcoin adoption confirmed the cryptocurrency’s short-term price target of $ 50,000. Mike McGlone, senior commodities strategist at Bloomberg, reiterated his bullish stance on Bitcoin in the Wake of the Tesla news, saying:

“Tesla could be a catalyst for increasing the bitcoin market cap to $ 1 trillion.” The company’s announcement that it is investing in bitcoin and accepting cryptocurrency for payment is a stepping stone similar to the move to work through PayPal in October, which points to $ 50,000 as the next resistance.”

Alex Kruml; ger, an independent macro analyst, also claimed $ 50,000 worth of bitcoin.

“I’m revising up my 2021 year-end BTC forecast for bitcoin to $ 63,442,” added another analyst, Chads.

Bitcoin was trading at $ 43,473 at press time.

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