The cryptocurrency boom is alive and well.
This morning, Bitcoin is up to $43,502, up about 28% on the day. All after Elon Musk announced he bought $1.5 billion worth of Bitcoin in January. He also said Tesla would start accepting Bitcoin as payment for its products. Better, his announcement is creating a FOMO effect for retail and institutional investors.
According to CNBC, “The company said it bought the bitcoin for ‘more flexibility to further diversify and maximize returns on our cash,’ according to the filing. In addition to the purchase, Tesla said it would start accepting payments in bitcoin in exchange for its products as well. That would make Tesla the first major automaker to accept bitcoin as payment.”
However, this may only be the start to the crypto-rally.
Citibank says we could see $318,000 BTC in 2021. Goldman Sachs, JP Morgan, and Citi are all reportedly looking into crypto custody, as noted by CoinDesk. Even BlackRock just said two of its funds can now invest in cryptocurrencies.
BlackRock Strategic Income Opportunities Fund and the BlackRock Global Allocation fund are only allowed to trade cash-settled bitcoin futures. BlackRock also said demand for Bitcoin is going to be a part of the asset suite for investors for a long time.