Bitcoin passes the $50,000 mark
The king of cryptocurrencies never ceases to impress the crypto-sphere. Driven by Tesla’s recent colossal investment, the price of Bitcoin (BTC) has just surpassed the symbolic mark of $50,000.
Since Tesla revealed it had invested $1.5 billion in Bitcoin, the cryptocurrency’s price has risen from nearly $39,000 to more than $50,150 at the time of writing these lines. Bitcoin is up nearly 28% in just 6 days.
A staggering performance of Bitcoin that allows it once again to strengthen its digital gold status and cause harm to its critics. Bitcoin now has a capitalization of more than $930 billion and ironically exceeds Tesla’s ,$780 billion.
Fundamentals are getting even stronger
In the coming weeks, it is undeniable that other major companies will follow Tesla’s lead. The Bitcoin Club continues to grow and institutions can no longer ignore the considerable advance of cryptocurrencies in recent months.
Already, the Payment Network Mastercard recently announced that it will integrate cryptocurrencies during the year. At the same time, Twitter plans to invest in Bitcoin. The same goes for Uber, which is exploring the addition of cryptocurrencies as a means of payment for its services.
Within the crypto-sphere, many are eager to know the name of the first company that will follow in Tesla’s footsteps. The arrival of one of the GAFAM members (Google, Apple, Facebook, Amazon and Microsoft) would also have an even greater effect on the price of Bitcoin.
For the industry as a whole, such initiatives are remarkable and prove once again how much the situation has changed in a few years. Now, the future of Bitcoin seems to be all set and all the signals are green for it to continue to reach new heights.
The strength of the round numbers for Bitcoin
It has now been more than a week since the price of Bitcoin (BTC) peaked at $50,000 (41,500 euros), a technical resistance that was joined following the bullish impulse built on the wholenewsflow about the adoption of BTC by large U.S. companies in their cash management.
Bitcoin’s “demand” is therefore steadily increasing, with both “physical” demand via merchant websites and financial demand, via high finance trading and corporate cash flow.
The bull run is still in its euphoria phase, but let’s keep in mind that all this will have an end, because BTC should NOT become a speculative bubble, but a reliable asset in the long run. That’s the key to his survival.
Can the bull run of the moment end at 50,000 euros? No one knows, because no one sees into the future, but historically, the round figures in the tens of thousands have created small pauses in the rise, before being crossed on the basis of a favorable daily close and prolonging the trend (see the crossing of $10,000, $20,000, $30,000, $40,000).
Institutionals are no longer giving up Bitcoin
Once again, MicroStrategy shows everyone that it is not ready to let go of Bitcoin. Listed on Nasdaq, the company has just announced plans to offer an additional $690 million in convertible bonds.True to itself, MicroStrategy plans to use these new funds to buy more bitcoins and significantly increase its reserves.
At the time of writing, MicroStrategy already has 71,079 BTC, the equivalent of nearly $3.5 billion. A huge amount of BTC that even corresponds to 37% of the company’s cash flow.
Since MicroStrategy began accumulating BTC in August 2020, the company now holds 0.33% of the total outstanding offer.
In addition, this desire for constant accumulation is carried by The CEO of MicroStrategy, Michael Saylor. A staunch Bitcoiner, he recently claimed that Bitcoin was “the best currency ever created.”
Moreover, the company not only invests in Bitcoin, but also preaches its vision to other giants. MicroStrategy recently organized a webinar with hundreds of companies to present the benefits of such an investment.
Such an initiative obviously benefits MicroStrategy in the long term, and undeniably helps convince new institutions to invest in Bitcoin.
SynBiotic buys Bitcoin
Munich-based SynBiotic SE has announced that it will hedge against the devaluation of the euro by investing in Bitcoin (BTC). It is one of the first publicly traded companies in Germany to carry out such a transaction.
The company explains that this decision is motivated by a “legitimate concern” about a massive devaluation of the fiduciary currency, due to an “excessive increase” in the money supply in euros and dollars.
SynBiotic SE’s CEO Lars Muller went further, pointing out that this choice was not motivated by the recent appreciation of the price of Bitcoin, he said:
“We have more long-term confidence in Bitcoin than in the euro where a central institution, influenced by politicians, can increase the money supply immeasurably.”
He added that the cannabis industry has had very positive experiences with the BTC as a means of payment, and that several SynBiotic subsidiaries already accept bitcoin.
A second company in Germany
SynBiotic’s stock rose sharply after the announcement. The stock is traded on the Dusseldorf Stock Exchange as well as on the financial securities exchange platform XETRA.
With its investment in Bitcoin, SynBiotic SE is following the example of Tesla and other large state-owned companies that have bet on the most well-known cryptocurrencies.
However, it is not the first German publicly traded company to invest in the BTC. Bitcoin Group SE, which is also listed on XETRA, owns BTC and even increased its assets to around 100 million euros in January 2021. SynBiotic SE did not disclose the amount of its acquisition.
Blockhain.com raises $120 millions
Blockchain.com , a portfolio and data provider for Bitcoin (BTC), has just raised $120 million from a macro-investor-led financing round. To date, the company has raised more than $190 million.
According to the London-based company’s press release, these investors include Moore Strategic Ventures (Louis Bacon), Kyle Bass, Access Industries, Rovida Advisors, Lightspeed Venture Partners, Lakestar and Eldridge.
Of particular note is GV (aka Google Ventures), an investment fund founded by Google that invests in companies specializing in new technologies.
”What excites me the most right now is the huge optimism of serious institutional investors about cryptocurrency,” said Peter Smith, founder and CEO of Blockchain.com.”
For Peter Smith, the fact that well-known investors participated in the last Blockchain.com is further evidence that institutions are seriously considering their cryptocurrency strategy.
“In fact, the current uptrend is dominated by Fortune 500 companies, investment funds and institutions that bring net flows into the cryptocurrency,” he added.
Industry behemoth confirms its position
A true industry giant, Blockchain.com claims that 28% of all Bitcoin transactions since 2012 have been made through its services. In addition, more than 65 million portfolios have been created on Blockchain.com since the platform was rolled out.
Optimistic about the future of the industry and its business, but aware that there is still much to do, Peter Smith concluded:
”It’s time to bring billions of people into the cryptocurrency and millions of institutions around the world. It’s time to build a financial system for the Internet. ”
Blockchain.com undeniably acts as a major player in the sector and often serves as the world’s leading experience in cryptocurrencies for new followers. A role that Blockchain.com fulfills rather well and which it intends to preserve for the future.
Motley Fool joins the Bitcoin Club
A true reference for English-speaking investors, the private financial advisory firm Motley Fool has just invested $5 million in Bitcoin (BTC).
In addition to this rather significant purchase, The Motley Fool took the opportunity to praise Bitcoin through a press release. While the price of Bitcoin continues to rise and has recently exceeded 50,000 dollars, the company invites its readers to invest in cryptocurrency .
”While Bitcoin may well continue to be volatile in the short term, we believe its price is 10 times higher than current levels over the long term. We plan to keep this investment in Bitcoin for many years to come,”
says Motley Fool.
The company points out that it has placed its trust in Bitcoin for three reasons:
- Bitcoin will retain its value more efficiently than long-term gold;
- Bitcoin could become a trading medium if prices stabilize in the coming decade;
- Bitcoin can act as an effective hedge against inflation.
A simple way to gain visibility for companies?
For companies, buying Bitcoin is becoming a real trend. Some institutions do so for a single speculative purpose, and are not necessarily interested in the underlying technology.
Even if this does not please the entire crypto-community, it is undeniable that these initiatives continue to push the price of Bitcoin upwards.
At the same time, many companies want to take advantage of the hype to which they will be entitled by buying Bitcoin. To support this, some buy Bitcoin without even disclosing the amount of their investment. In any case, the adoption of Bitcoin continues and does not seem ready to stop.
This page may present investment-related assets, products or services. Some of the links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus using our links.
Investments in cryptocurrencies are risky!
Btctools is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused by the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers must do their own research before taking any action and invest only within their financial possibilities. This article does not constitute investment advice.