The Bitcoin price started correcting almost immediately after Elon Musk announced that Tesla can now be bought with Bitcoin. Bitcoin had initially dipped, losing around 4% at midday, and continued to correct downwards the following day.
BTCUSD Chart By TradingViewBulls reclaimed momentum a few minutes after he made the series of tweets and Bitcoin began working its way up. As of publication, Bitcoin has nosedived to $52k, marking 8.96% in daily decline. Bulls are still steadfast on board. But if the price tap is temporary, the asset could drop significantly as there will be no momentum to sustain prices.
Tesla’s sheet has already profited from its Bitcoin investment, accumulating more in external ROI than in all its 13 years of existence, but the numbers are about to surge even higher as the growth rate increases significantly.
Breaking this down was an observer who analyzed Tesla’s growth rate saying:
“If just 3% of Tesla sales are in Bitcoin, that’s $1B of Bitcoin buying per year locked into the balance sheet.But Tesla sales are growing 30% p.a.Bitcoin adoption growth is similar.So you are looking at a 50%+ growth rate on $1B Bitcoin per year being sucked into Tesla.”
Institutional investors are being advised to follow suit. “When Apple?” says Joseph Young, asking when the tech company will allow users to buy its products with Bitcoin. This may soon become a reality, seeing as Coinbase says a decent number of leading tech companies are already acquiring Bitcoin privately.
Recently, we noted that …
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