With the high increase in the price of Bitcoins, the bull run of bitcoin seems to intensify. The market also anticipated a pick up. This is all because of the high corporate demand for bitcoin. After Tesla’s major investment in the cryptocurrency, the demand for bitcoin has intensified to an all-time high.
As per a trader and analyst named Alex Kruger, prices for bitcoins can fly very high. In addition to this, he also expects some other heavyweight businesses to follow the suit.
On Monday, Tesla disclosed that they have made a $1.5 billion heavy investment in Bitcoins. The comment by Tesla also signalled at an openness towards acquiring more digital assets in the future. The new investment by Tesla has kicked the bitcoin market to an all-new level of overdrive.
Bitcoin has also witnessed a record single-day spike in terms of dollar. It rose by almost $8000 and acquired a new high of almost $46000. All these data are provided by Coindesk.
In addition to Tesla, many other listed companies like the MIcroStrategy have also adopted bitcoin as a treasury asset in the last few months. The recent investment move by Tesla is notable and it is among the first Fortune 500 companies that has diversified its cash holdings into cryptocurrency.
Although the actual investment amount isn’t too large. But, many investors as well as analysts are predicting that many market-leading companies will also make investments and it will have a spiral effect on the prices of the currency.
As per the theory of “reflexivity” this is a positive feedback loop between the expectation and the economic fundamentals. Investment by Tesla in bitcoins many have validated many narratives by people that said that Bitcoin can act as a reserve asset. With this amazing move by Tesla, many new buyers will also join the marker and it will have an upward pressure on the price of bitcoins.
Market is now expecting that other corporations will also follow Tesla and MicroStrategy’s strategy. Many people believe that tides are in favor of Bitcoins at the present moment and it could become the next wave in the corporate book.
Investors interest in call options has also increased. This is an indication of investors positioning themselves for a continuous rise in the price. So, the new investment by Tesla in bitcoins is the biggest news we have received for the month and it can be said that Bitcoin certainly has an amazing future in upcoming days.