After Tesla made its announcement to make a $1.5 billion investment in bitcoin, the BTC price action saw remarkable growth. Each bitcoin now has a brilliant $48,000 value. Analysts who assumed BTC to have a downfall following a bear course, are proven wrong another time.
Along with BTC, altcoins also witnessed an increase in their price. The total crypto market cap stands at $1.4 trillion showing more than double growth.
The Impact Of Tesla On Bitcoin Price
After Elon Musk’s tweets began to make noticeable changes in the crypto market, the recent announcement by Tesla now shows a great impact on the BTC course. BTC succeeded to take a steady rise in the recent weeks. Though after inspecting the volatility in BTC price action many investors expected the price to dip, the cryptocurrency proved all those assumptions wrong.
There are also supporters of the largest cryptocurrency in the world who think that it is capable to surpass the market value of gold.
But if we focus on the recent circumstances, Tesla’s support for the cryptocurrency provided more validation and acceptance for it. It also encouraged big investors and companies to take the digital asset into account.
Regarding the matter, Nick Jones, the Zumo executive stated that Tesla enhanced the validation for BTC as a trustworthy asset for retail, institutional and corporate investors. It is expected that there will be several bigger investments in this cryptocurrency.
Tesla also declared in the report filed to the U.S SEC that the company plans to accept bitcoins as a payment method as well.
As billionaire investors like Elon Musk and Bill Miller show their constant support for cryptocurrencies, the future of crypto assets is expected to get brighter in the upcoming years.
