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Is It Too Late to Buy Bitcoin? Tesla Rally Brings BTC Close to $50k

The price of Bitcoin hit another new all-time high this week following the announcement that Tesla, the electric vehicle company founded by Elon Musk, had invested $1.5 billion into Bitcoin. Within 24 hours of the announcement, the price of BTC rose more than 26 percent from roughly $38,000 to just over $48,000.

The firm was not the first large-scale corporation to make a major Bitcoin purchase, after all, Microstrategy, Stone Ridge, Square and a number of other companies have publicly announced multi-million or even multi-billion dollar BTC purchases over the last several months. However, a number of analysts believe that Tesla’s move represents a sort of ‘tipping point’ for Bitcoin, and perhaps for the cryptocurrency industry at large.

Indeed, Paolo Ardoino, Chief Technical Officer of crypto exchange, Bitfinex, told Finance Magnates that: “Tesla’s announcement may be bringing cryptocurrency to a new level.”

“There may not be any going back,” he said. “I expect bitcoin to be added to the balance sheet of many corporations as its quality as a form of digital gold becomes only more relevant.”

“It’s Likely the Price Will Hit $50,000 by the End of the Week.”

Therefore, $50K may be in the cards sooner than later, and, as such, perhaps this is some kind of a “tipping point.”

And indeed, while Bitcoin may have seemed like a far-fetched addition to any serious corporation’s balance sheet several years ago, times have changed. COVID-19 has wrought major changes on global society, including the creation of trillions more dollars, euros, pounds, and other fiat currencies, as such, a growing number of retail and institutional investors alike are beginning to see BTC as a hedge against inflation.

Simon Peters told Finance Magnates that: “we believe other companies will also look to hold some bitcoin as both a diversifier, and as an insurance policy against the devaluation of other currencies.”

“This has far-reaching implications for companies,” Peters explained. “If corporates the size of Tesla, valued at nearly $1 trillion, believe bitcoin can be used in this way, and are willing to back its views with action, then others will undoubtedly start to consider it. Tesla has diversified its own business by investing in bitcoin on a grand scale.”

In addition to the changes in global monetary policy, COVID has caused a grand re-wiring in terms of how much time the world spends online: “the world is moving online more and more,” Peters said, adding that “bitcoin sits at the heart of online transactions.”

“With this kind of endorsement from a multi-billion dollar company, it’s likely the price will hit $50,000 by the end of the week.”

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