Bitcoin just soared to a new all-time high of $ 49,400 despite a consolidated ETH price. The leading cryptocurrency has established this new high after much of the past week trading in the $ 47,000 range.
Bitcoin is going higher thanks to the continued influx of institutional capital.
Tesla revealed on Monday that it holds a substantial amount of BTC to protect cash positions and provide liquidity for the intent to accept payments in BTC.
Institutional investor support drives further demand for Bitcoin
Raoul Pal, the CEO of Real Vision and former hedge fund sales manager at Goldman Sachs in Europe, stated that the participation of organizations like Tesla will create a feedback loop driving demand for Bitcoin:
“Remember that as BTC’s market cap increases, it forces more institutions to join. The more accepting institutions there are, the more others have to do so, and the harder it is for regulators to stop it. A perfect reflexes run it all.
For example, the news of Tesla buying Bitcoin to diversify its cash portfolio has sparked discussions about cryptocurrencies with other corporations across the United States. For example, Twitter’s chief financial officer said that they are looking at Bitcoin and even paying salaries with cryptocurrencies in a recent CNBC interview.
Bitcoin’s technical indicators may also indicate that there is room to move higher.
“PlanB”, an analyst focusing on BTC, notes the relative strength index is on a similar path as the one in the previous cycle. If history does repeat, Bitcoin still has the ability to scale up its rally before experiencing a correction.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should learn carefully before making a decision. We are not responsible for your investment decisions.