Tesla Bitcoin investment news made the biggest breaking of crypto market in 2021 so far, sending the price of bitcoin closer to $45,000.
Elon Musk’s Tesla Inc. invested an aggregate $1.50 billion in bitcoin under the updated ‘investment policy’ and may acquire and hold digital assets from time to time or long-term. Now the big question is, Would Other Companies Consider Putting a Part of Their Reserve Into Bitcoin or other digital assets?
This was a real big news in terms of Bitcoin as an investment option for public companies. Investment by Tesla, coupled with recent Bitcoin investment of MicroStrategy, One River Digital, PayPal launch of cryptocurrency platform to all U.S. customers, and Visa crypto ambitions are giving a really strong signal which can’t be ignored.
It is highly likely that other companies might consider putting some of their reserve assets into bitcoin. Ravi Kumar, Market Analyst at AlexaBlockchain, said:
“It is certain that investors and other industry people will be closely watching this devlopment to see if other firms follow the lead of Tesla on this crypto path or only a selected firms chose to make strategic investment in bitcoin or other digital assets.”
Bitcoin’s price gains also are drawing attention to the asset, investments experts say, as a run-up in the Dow Jones Industrial Average DJIA, and the S&P 500 index SPX, has market participants worried about lofty valuations in equities against the backdrop of interest rates at or around 0% in the US.
Bitcoin prices have surged 50% so far in 2021. Meanwhile, the S&P 500 has gained 3.5%, the Dow has gained 1.8% in the year to date, while the technology-laden Nasdaq Composite Index COMP, was up 7.5% thus far this year. Gold prices GC00, are down 3.5% this year so far.
Several high-profile Wall Street investors, including Stanley Druckenmiller and Paul Tudor Jones, have embraced bitcoin. Famed investor Bill Miller, founder of Miller Value Partners, in a letter to clients earlier this month published on the firm’s website, reaffirmed his bullish outlook on bitcoin.