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Announcement of Tesla's $1.5B Bitcoin Purchase Caused Panic

9 February 2021, 10:46
Votes: 1

The US SEC's report about Tesla's recent activity in buying about $1.5 billion in bitcoins caused another panic in the crypto environment. The price of BTC hit a new high and seems to attract massive attention from the side of blue-chip investors. Login Casino follows the shakiest cryptocurrency news, now explaining a possible new turn in the digital assets world.

Announcement of Tesla's $1.5B Bitcoin Purchase Caused Panic

According to the US Securities and Exchanges Commission reports, Tesla Corporation invested totally about 1.5 billion dollars in Bitcoin. Even though it happened at the end of January, the official announcement has shaken the crypto world only now.

The market's reaction was quite flashy – BTC took a $48 000 point in less than 24 hours, skyrocketing from about $39 200 per coin. This Bitcoin boom is accompanied by the announcement that Tesla will add this cryptocurrency to their financial transactions, which means that clients can pay for the brand cars in BTC.

What does it mean in a longer perspective?

Traditionally for cryptocurrencies, a sharp increase can lead to two different outcomes. The first one is extremely positive for Bitcoin and the whole crypto world. Thus, it can be the step towards wider acceptance of digital assets, which will lead to the increase of the price. Another positive reaction can be the attraction of blue-chip companies to the cryptocurrency environment, which will also be accompanied by the increase of BTC and other top tokens.

However, none can ignore Elon Musk's ability to manipulate the info space. Thus, his announcements usually greatly impact the Tesla stocks price, which gives huge opportunities to earn on shaky movements. Among the most pessimistic outcomes can be the desire to sell bitcoins that have been bought at the end of January but haven't risen since that time. Attracting more attention always leads to the price increase, but what will be the long-lasting reaction of the market and the whole crypto environment?

Read moreWhat to expect in the crypto world: Bitcoin price prediction 2021

Read moreHow can Elon Musk manipulate Tesla stock prices?

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