Bitcoin on a course to get past $50,000
At the time of writing this post, the price of Bitcoin was $ 46,823.10 having climbed from around $33,000 in just less than a week, thanks to Tesla’s investment into the digital currency. And this takes as only about $3,000 shy of JP Morgan’s prediction at the start of the year that the cryptocurrency could get above $50,000.
In a note on the 4th of January 2021, JP Morgan said, “At its market cap of $575 billion, bitcoin would have to surge to $146,000 to match the total private-sector investment in gold via exchange-traded funds or bars and coins.” The note continued to say, “While we cannot exclude the possibility that the current speculative mania will propagate further, pushing the bitcoin price up towards the consensus region of between $50k – $100k, we believe that such price levels would prove unsustainable.”
After Tesla invested in Bitcoin, the digital currency will likely hit $50,000 very soon
Although there were indications from Elon Musk, the CEO of the giant electric car manufacturer, that he sees cryptocurrencies as a great investment front through his tweets, nobody had seen this coming.
But the surprise announcement that Tesla had bought $1.5 billion in bitcoin and it plans to accept Bitcoin as payment for its vehicles set the cryptocurrency on a renewed bullish rally after what seemed like a retracement.
On Monday alone after Tesla made the announcement, Bitcoin went up by over 2% to get past its previous all-time high and get above $44,200.
Although the two, Elon Musk and JP Morgan are from different industries, they both see potential in Bitcoin despite its volatility.
Tesla joins the likes of Paypal and Square in investing in Bitcoin
The first phase of the Bitcoin bullish rally that started in November 2020 was hugely attributed to institutional investors like PayPal and Square who had invested huge amounts into the digital currency.
Tesla seems to be confirming what PayPal and the rest had seen in Bitcoin. And this could just be the beginning of another big bullish rally for Bitcoin which shows more vigor after its slight retracement last week.
Dogecoin – the other cryptocurrency Elon Musk has tweeted about
Besides Bitcoin, Elon Musk has also tweeted about Dodegcoin, which has resulted in the currency’s value rises. Although Dogecoin is not a very popular cryptocurrency in the world of cryptocurrencies, the billionaire seems to be in love with it and we can expect anything.