The leading cryptocurrency reached a new all-time high after Tesla announced on Monday the purchase of US$ 1.5 billion in bitcoin. So the price rose to US$ 44,000,00 while the previous record was just over US$ 41.000.00 —in early January.
In this week’s special Fala Investidores, Carlos Russo, head of Research and Portfolio Management at Transfero, points out that institutional investors’ interest in bitcoin had already been increasing sharply. So Tesla’s news reinforces the trend. “It’s great news for the crypto environment, further strengthening the bitcoin”, Russo says in Fala Investidores.
“With the increasing adoption of BTC by the world’s leading companies, more and more purchases of goods and services can be made using cryptocurrency, making the dollar less relevant over time”, Russo concludes.
This week’s Fala Investidores brings very good news to the crypto environment: Tesla has bought 1.5 billion in bitcoin.
O #FalaInvestidores desta semana traz uma notícia muito boa para o meio crypto: a Tesla comprou 1.5 bilhão em bitcoin.
— Transfero Swiss AG (@transferoswiss) February 8, 2021
The entry of more companies after Tesla may lead bitcoin to a new record
“Tesla’s entry is already a consequence of the Michael Saylor effect, which pioneered allocating cash and issuing debt to buy bitcoin at Microstrategy. With Tesla, the potential to generate a chain reaction increases”, says Safiri Felix, Director of Products and Partnerships at Transfero Swiss.
“Tesla has allocated around 8% of the cash in BTC, so we can already see the potential effect if Amazon, Apple, Google do the same with at least 1%”, the executive said.
Tesla’s information on the purchase of bitcoins is stated in a document the company sent to the SEC (U.S. Securities authority). According to the text, the goal is to have “more flexibility to diversify more and maximize the returns of our capital”.
Regarding the possibility of accepting bitcoin as a form of payment, the company says it expects to do so “shortly”. However, the move is subject to “applicable laws and initially, on a limited basis.” Should this plan come true, Tesla will be the first major car manufacturer to receive bitcoin payments.
The measure got praises from Michael Saylor, founder of MicroStrategy and a strong bitcoin enthusiast. “Congratulations & thank you @elonmusk & @Tesla for adding #Bitcoin to your balance sheet. The whole world will benefit from this leadership”, Saylor wrote.
Congratulations & thank you to @elonmusk & @Tesla on adding #Bitcoin to their balance sheet. The entire world will benefit from this leadership.https://t.co/FVTepBqAI2
— Michael Saylor (@michael_saylor) February 8, 2021
Recently, the founder of MicroStrategy asked Musk to convert Tesla’s balance sheet into bitcoins. Apparently, the request worked.