Elon Musk’s Tesla drives Bitcoin to a new all-time high, reaches $48,000

Elon Musk CEO of Tesla
Elon Musk CEO of Tesla

Shortly after Bitcoin reached an all-time high of above $44,000 on Monday, the cryptocurrency continued the rally soaring above $48,000 on Tuesday morning.The Bitcoin rally followed news that Elon Musk’s Tesla (NASDAQ: TSLA) said it bought $1.5 billion of the digital token. Tesla also said that it will start accepting Bitcoin as payment soon.

“You’re going to see every company in America do the same thing [as Tesla],” Novogratz, the founder of crypto investment firm Galaxy Digital, told Bloomberg.

Consequently, investors hurried to invest in the digital asset — driving BTC price to a new-all time high. However, the cryptocurrency plummeted 6% to $46,200 as of 9 am EST. 

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In an interview with CNBC, Vijay Ayyar, head of Asia Pacific at cryptocurrency exchange Luno in Singapore said, “One by one, corporations will add Bitcoin to their balance sheets and it couldn’t get bigger than Tesla. Imagine if 100 companies start putting even 1% into Bitcoin, what that is going to do to demand and supply.”

Bitcoin could reach $60,000 thanks to Musk’s Tesla

Furthermore, many analysts said that there is a growing institutional interest in the cryptocurrency. They suggest that it will eventually push the digital token’s price to $100,000 in 2021. Michael Novogratz told Bloomberg TV on Monday “the bitcoin price could more than double to $100,000 by the end of 2021 as big-name firms get behind the currency.” 

“One of the things that connect bitcoin and Musk’s Tesla and solar stocks and ESG investing is millennials and gen Z. Young people are buying into the future, and they see cryptocurrencies – bitcoin and other cryptos – as their currencies,” he added.

Bitcoin gained more than 1000% since March 2020. The digital token was trading at $4,000 back then. However, with more billionaires endorsing Bitcoin, it’s estimated that it will gain more momentum in the future.

Edward Moya, senior market analyst at currency firm Oanda, said: “All eyes are for bitcoin to hit $50,000 at some point in the near future, and it could go much further if the dollar resumes its slide. Bitcoin volatility remains elevated, but it looks like we are at the beginning of the breakout from a consolidation pattern. If crypto-mania continues, $60,000 could become a reality before the quarter ends.”

Meanwhile, the second-largest cryptocurrency Ethereum is breaking new records. The digital token surged above $1,800 on Tuesday, after CME Group launched trading in ETH on Monday. Furthermore, Grayscale bought $100,000 additional Ethereum, and currently holds $5 billion in crypto asset.

In conclusion, analysts said that a falling dollar could support the Bitcoin price further. The dollar index dropped 0.35% to 90.62 on Tuesday.