The company recently invested over a billion dollars in Bitcoin, even with the CEO’s controversial relationship with the digital asset. The firm’s CEO, Elon Musk, had criticized the digital currency in the past, which led to some uproars on social media. But now, Musk seems to have had a change of heart, regarding the asset, with his firm’s recent investment that could signal Bitcoin’s entry as a mainstream investment.
Crypto experts foresaw the digital asset attracting institutional buyers, currently happening with MicroStrategy and Tesla’s billion-dollar investments. Interestingly, Michael Saylor, MicroStrategy’s CEO, had advised Musk to invest in the digital asset. The billionaire followed suit, and his company’s massive investment caused price growth.
Bitcoin hits $47,000 with the recent surge
Since early Monday morning, the digital asset started recording notable gains and has since then hit the $45,000, $46,000, and $47,000 price marks. While people expected the Tesla investment to bring positive price changes, not many suspected that the asset would reach the $47,000 mark within an hour. The company officially announced its recent investment move in the crypto, having bought around $1.5 billion worth of cryptocurrency.
Most predicted the asset moving towards the $45,000 mark and stopping there, but the growth would encourage new investors to join the crypto industry with the current price level. The announcement led to some actions from Asian crypto traders, who contributed to pushing the price past the $45,000 mark.
The industry pushed the asset to the $47,000 point because resistance within the level is not strong enough to stop the bull run. The asset saw an unexpected upward trend, which currently stands as BTC’s ATH. Tesla’s investment is the biggest push for the current price growth, but sources claim that other factors also contributed to the new value.
The sources explained that investors are rushing into the investment to use it as a hedge against inflation. Some of those investors include Bill Miller, who announced his decision to take on the crypto investment.
Excessive money printing leads to the crypto industry’s boom
Many institutional investors understand that many countries like America are excessively printing fiat currencies to induce spending in a bid to return the nation to its economic stability before the pandemic. Unfortunately, this decision would induce inflation by causing money to lose value in an economy. Experts predict that the decision from Tesla could bring in bigger institutional investments, especially with the economy’s current state.
A source described the decision as a gradual move by institutional monies to finally take Bitcoin to the mainstream. When the public accepts Bitcoin, it will lead to rapid growth of the economy. The firm revealed that its investment would be long-term, which means that BTC supply could decline, especially when institutional companies buy heavy amounts of the asset.
A publication claimed that the BTC supply is now very tight since most of the assets are lost or held by investors. The institutional investors in the digital asset industry would make it more difficult for the average man to afford Bitcoin investment, with the continuous rise.
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