Bitcoin witnessed unusual volatility yesterday, recording a whopping $1.33 billion traded in the market, shooting up BTC price above the $44,000 all-time high. Yesterday was a stormy day for the crypto world. The market was unusually volatile as BTC jumped heavily, reacting to Tesla’s announcement that it would $1.5 billion worth of Bitcoin. The big news resulted in the liquidation of over $1.33 billion by both buyers and sellers, with buyers overpowering the sellers.
Tesla’s Move Breaks Bitcoin’s New Record Level
On Monday, Tesla endorsed Bitcoin, thereby strengthening the request by stakeholders in cryptocurrencies that Bitcoin is regarded as an investment tool and a generally acceptable means of payment. Now, the market moves faster in the crypto space than ever imagined.
Before the big news, the BTC market was very quiet, pointing towards the $40K mark following its failure to maintain the same level on Saturday. But in just an hour, Elon Musk’s Tesla informed the SEC of its decision to purchase $1.5 billion. The firm also made it known that it would soon be accepting BTC from buyers of its products. This led to a surge in BTC price, which led other cryptocurrencies to follow the same direction.
The price first broke through the $44K mark. It was heading to $45K but later settled at $43K. This caused traders to liquidate their BTC holdings massively and the crypto market by extension, as the market now settles around $1.34 billion in 24 hours. Buyers are still maintaining the upper hand while sellers are below 20%. As of writing this report, the bears have a 17% share of the total liquidation while the bulls dominate 83%. BitMEX recorded the biggest single order– a $10 million worth of BTC.
Analysts Comment on Elon Musk’s Adoption of Bitcoin
Crypto experts believe that Elon Musk’s announcement might have arrived late in the crypto market’s increasingly bullish trend. However, they think that he will soon make bigger investment decisions as time goes by.
Some experts have expressed their opinions on the move made by the manufacturer of electric cars. Stefan George, a crypto analyst, believes that Tesla’s Bitcoin adoption has signaled the dawn of a new era. The move has bridged the gap between the traditional means of payment and the latest crypto evolution. Hence, tokens will now be regarded as both a medium of exchange and a store of value.
Also, Demot O’Riordan of Eden Block stated that this period would probably be remembered in the near future as a watershed. He sees Musk’s endorsement of Bitcoin as a stamp of legitimacy placed upon the crypto industry and an opportunity for both individual and institutional investors to join the crypto world. Tesla’s move will attract other more prominent companies and influential individuals who were hitherto stirring on the fence.
According to Leah Jonas of Celsius Network, Musk’s endorsement of Bitcoin has strengthened Bitcoin’s position as not only a safe store of value but an investment tool with massive potentials that will soon be revealed. He also sees this as an opportunity for smaller tokens to develop and partner with Tesla or other institutional investors.