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, suggesting longer gains as traders delighted with Wall Street’s fifth largest company entering 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 BTC launched. Source: BTCUSD on TradingView.com
Bitcoin hits ATH following Tesla's BTC adoption. 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 file, “we anticipate that in the near future we will accept Bitcoin as payment for our products, subject to applicable laws and initially on a limited scale, 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 can be [the] Catalyst to bring Bitcoin market cap to $ 1 trillion. The company’s disclosure that it is investing in Bitcoin and accepting the cryptocurrency for payment is a stepping stone similar to PayPal onboarding in October, pointing to around $ 50,000 as the next resistance. ”
Alex Krüger, an independent macro analyst, also requested a bitcoin for $ 50,000.
“I’m revising my forecast for the year-end 2021 BTC Bitcoin to $ 63,442,” added another analyst, Cheds.
Bitcoin was trading at $ 43,473 at press time.