Bitcoin
The Bull Market is Back: Bitcoin Explodes as Tesla Loads up on 10-Figures Worth of BTC
Cole Petersen | Feb 08, 2021 | 14:53
- Bitcoin’s price soared higher today on news of Tesla acquiring $1.5 billion worth of BTC to add to their balance sheets
- This news was revealed in a recent SEC filing and naturally caused the entire crypto market to make a massive move higher
- This news is already driving massive demand towards Bitcoin, with on-chain data revealing a massive premium on Coinbase
- This is typically a bullish sign because it signifies that an uptrend is being driven by sustainable spot-token buying rather than leveraged positions
- Tesla also announced plans to accept cryptocurrency as a payment option for their vehicles, which goes a long way towards driving mainstream adoption
Bitcoin is currently roaring higher, with nears of Tesla adding $1.5 billion worth of Bitcoin to their balance sheet being one of the most bullish developments in the cryptocurrency’s history.
So far, BTC is only trading up a bit over 10% on the news, but there’s a strong possibility that it continues navigating higher in the days and weeks ahead due to the immense inflows of demand that are now pouring in.
One analyst recently pointed to the premium on Coinbase, which could be a sign of imminent upside.
Tesla Shocks the World, Adds $1.5b in Bitcoin to Its Balance Sheet
At the time of writing, Bitcoin is trading up 11% at its current price of $43,400, which marks a massive surge from its recent lows of $38,000 that were set just 12 hours ago.
The crypto’s price rocketed higher overnight on news of Tesla adding $1.5b in BTC to their balance sheet, which helped ignite what could be the early stages of the next bull run.
The auto and solar manufacturer also plans to allow customers to use Bitcoin as a payment method for vehicles, which could drive greater mainstream demand.
Tesla News Drives Massive Coinbase Premium
One on-chain analyst observed that there is currently a significant premium for BTC on Coinbase over other exchanges.
This is a positive sign because it shows that the market is being propelled by actual organic buying pressure rather than high leverage.
“Meanwhile in Coinbase… +$452 premium”
Image Courtesy of Ki Young Ju. Source: CryptoQuant.
Because this news fundamentally shifts Bitcoin’s outlook, there’s a strong possibility that further upside is imminent in the near-term.
Featured image from Unsplash. Price data from TradingView.
