Written by Rob the Watergod 2/8/21
First off, Bitcoin made a huge jump from 38K to 44K in a matter of minutes this morning. This came after Elon Musk made a 1.5 Billion dollar investment in Bitcoin. In fact, Tesla would soon accept bitcoin as a form of payment for cars.”We expect to begin accepting bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis. Which we may or may not liquidate upon receipt,” Tesla said. Even Redditors started discussing Musk’s investment. Although, chatting about cryptocurrencies are banned on the WallStreetBets community. Users in other subreddits posted “to the moon,” wanting more companies to follow after Tesla. In December, Musk asked if it was possible to do large transactions with bitcoin. Furthermore, Tesla decided that they were going to put almost 8% of their reserves into Bitcoin.
Also, PayPal said in October it would allow customers to buy, sell and hold bitcoin and other virtual coins using its online wallets. Tesla expects Bitcoin to emerge as another store of long-term value alongside the dollar and gold. Musk has been pumping the price of bitcoin while making a major investment in the cryptocurrency. Other mainstream companies have begun to center their interest in bitcoins. Also making virtual assets a part of their balance sheets. Furthermore, Bitcoin’s price gains also are drawing attention to the asset, investments experts say, as a run-up in the Dow Jones Industrial Average and the S&P 500 index as market participants worried about lofty valuations inequities against the backdrop of interest rates at or around 0%.
Can Bitcoin Get To 50K This Week?
Since, traders like Paul Tudor Jones, and now companies like Tesla getting involved in bitcoin. Investors are wondering how much potential the crypto industry could have. If just a fraction of top corporations put a small percentage of their cash holdings in bitcoin, it could drive significant gains in the asset. Therefore, Bitcoin peaked near $42,000 in early January before pulling back. That dip ultimately retested the 261.8% extension twice and held that mark firmly both times. Furthermore, the 50-day moving average acted as strong support. Bitcoin burst over last month’s high, giving the cryptocurrency not only new all-time highs but a monthly-up rotation. In fact, the move sent shares to the four-times range extension near $43,050. And nearly to the 423.6% extension at $45,360.
However, If it can clear the 423.6% extension, things will get interesting. Specifically, it could put the 461.8% extension in play, up near $49,090.At that point, the key $50,000 level will be on investors’ minds. And not to get too confusing, but the 161.8% extension from the most recent range as measured from the low near $29,000 in late January to the high at $42,000 sits at $49,990. With those extensions in mind, $50,000 seems within reach if bitcoin can clear $45,360
Investors Thoughts On Tesla’s Investment
There are some investors like Michael Farr who think Telsa’s investment in Bitcoin was too risky, however, there are others who differ. Some analysts said that while Elon Musk is a relatively late adopter of cryptocurrencies, they believe this is one of several investments he will make in the space. Dermot O’Riordan said “This moment will likely be looked upon in years to come as a genuine tipping point. Elon and Tesla’s support legitimizes crypto and opens up bitcoin to a whole new class of retail and institutional investors. Now it seems all of Wall Street is in bed with this industry if they weren’t paying attention before, they are now.”
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Warren Buffett has repeatedly criticized Bitcoin and other cryptocurrencies as risky and worthless. “I can say almost with certainty that they will come to a bad ending”. “If you and I buy various cryptocurrencies, they’re not going to multiply. There are not going to be a bunch of rabbits sitting there in front of us. They’re just gonna sit there. And I gotta hope next time you get more excited after I’ve bought it from you. And then I’ll get more excited and buy it from you. We could sit in the house by ourselves and we could keep running up the price between us. But at the end of the time, there’s one Bitcoin sitting there and now we’ve gotta find somebody else. They come to an end”. Warren Buffet and Bill Gates even have said that they would bet against crypto if they could.
Conclusion
In conclusion, after Tesla investment Bitcoin set a new record. There are also other cryptocurrencies that can explode just like Bitcoin. There is a high risk of trading these cryptocurrencies. If you want an expert to help you set up your Investment portfolio email us at info@Thompsonempire.com
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