22.02.202113:30 Forex Analysis & Reviews: How did the case of Tesla Motors help Bitcoin's sharp growth?

The leading digital currency continues to hold its positions and surpass all of experts' expectations. The global media has been hyping up Bitcoin for three consecutive weeks, and Tesla Motors' encouraging words to invest in cryptocurrency continues to gain impulse. Just like the entire cryptomarket, Bitcoin expectedly continues to sharply rise. In this context, it set another record value this weekend.

From February 20-21, Bitcoin's price reached $ 58,000 for the first time in its history. However, its current position has significantly declined, remaining at the level of $ 54,000. But still, the value of the main cryptocurrency has risen by 57,000% for the past 8 years of its existence. Moreover, it is worth noting that the asset showed the most rapid growth in early 2021. With the growth in Bitcoin's quotes, its total capitalization also steadily increased and has overcome the $ 1 trillion mark. Today, it became known that the total value of the first cryptocurrency surpassed the giant Chinese holding, Tencent.

Exchange Rates 22.02.2021 analysis

This occurred amid the new investment injections and increased public attention. As a matter of fact, Tesla Motors was the one who provoked the increased interest in Bitcoin. However, Elon Musk, Tesla's CEO, stated recently that investing in Bitcoin is just a less stupid form of liquidity than savings in cash. Despite his skeptical position, large investors were attracted not only by the fact that the electric car manufacturer interacted with digital assets, but also by the result. On February 8, Tesla announced investing in bitcoin, amounting to $ 1.5 billion. As of February 22, it was reported that Elon Musk's company earned more on bitcoin in two weeks than on the sale of its cars for the entire 2020 year. This was a signal for large companies – the cryptocurrency market, as an object of investment, is a very promising industry.

It was this fact that became decisive for the majority of large investors who began to actively enter the cryptocurrency market. From then on, everything went on a chain reaction: wide publicity in the global media and weekly value records that led to a significant increase in the flow of retailers.

The status of Bitcoin is gradually acquiring the required safety margin, which persists regardless of market volatility and the amount of investment flows. This process has just started and this foundation will take some time to allow Bitcoin to combat volatility and become a full-fledged financial instrument.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

Artem Petrenko,
Experto Analítico
Grupo InstaForex © 2007-2021
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