Bitcoin (BTC) price soared to fresh record highs above the $48,000 mark this morning amid the latest buying wave driven by Tesla’s adoption of cryptocurrency.
Fundamental analysis: Musk leads the wayIn an extremely bullish move yesterday, Tesla announced it purchased $1.5 billion in Bitcoin. It is also added in the SEC filing, that the EV company expects 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.”
Market analysts are now widely expecting other companies to follow suit and invest in Bitcoin.
“Every company should be looking at how to accept digital currencies, digital payments as part of their business scheme. It’s not that difficult. It’s what customers want, it’s where the world is moving. And so that I think he’s getting ahead of the curve, and I think you’re going to see every company look to figure out how they could, from McDonald’s to Bojangles, you name it,” Mike Novogratz, founder of Galaxy Digital, said.
Similarly, Mohamed El-Erian from Allianz argues that BTC price is likely to keep the bullish momentum amid the latest news.
“What did Tesla tell you? Two things. One is that this will be a form of payment. And two is that this is an investment vehicle. So those are two powerful endorsements for the notion, I want to stress the notion, that bitcoins are a currency, a money, because after all money is a store of value. Money is a form of payments. So yes, that will build further momentum,” he said.
Technical analysis: Positive momentum to continueBitcoin price soared 19.5% yesterday to mark the biggest daily gains since December 2017. Buyers continue to push the price action higher this morning, resulting in a print of $48,216 – a new fresh all-time high.
Bitcoin daily chart (TradingView) As seen in the daily chart, yesterday’s daily close took place above the 127.2% Fibonacci extension, signalling a potential continuation in the bullish run. The next target on the upside is 161.8% that comes just above the $50,000 mark. It is likely that we may see a pause in the BTC rally after tagging this psychologically-important level.
SummaryBitcoin price hit a new all-time high this morning driven by surging interest in cryptocurrency after Tesla announced it bought $1.5 billion in Bitcoin.
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