- Bitcoin’s price saw a massive upswing overnight following news regarding Tesla’s purchase of $1.5 billion worth of BTC to add to their balance sheet
- This represents 10% of the company’s total cash balance, which is significant considering its size
- Naturally, this news riled investors and caused hundreds of millions of dollars worth of short-sided liquidations
- The company also has intentions of allowing customers to pay for their vehicles using the benchmark cryptocurrency
- This is no doubt a bull-favoring “white swan” event for the cryptocurrency, and it could lead to the next leg higher
- The City of Miami is also showing interest in buying some BTC, which could propel it even higher in the near-term
Bitcoin has seen some wild price action due to the news surrounding Tesla’s massive $1.5b Bitcoin purchase.
Unlike the last “Elon Musk” candle that bears quickly reversed, this move seems to be a bit more sustainable because it speaks to the growing trend of corporate adoption for Bitcoin as a store of value.
The trend is unlikely to end here as well, as the City of Miami may be the next notable entity to add BTC to their books.
Bitcoin Rallies Following Massive Purchase from Tesla
Overnight, Bitcoin surged from lows of $38,000 to highs of $45,000 that were set earlier today, at which point it met some resistance that caused its price to slide down to $42,000.
It has found some support here and may begin pushing higher in the short-term.
Over the past few weeks, Tesla’s accumulation may not have boosted BTC’s price action too much, but it does signal that the trend of corporate adoption is ongoing.
This City May be the Next Notable BTC Buyer
The next notable buyer to add Bitcoin to its balance sheet might be the City of Miami. Its mayor noted in a recent tweet that he is working on a resolution for the city’s commission regarding the topic.
“Working on a resolution for our commission for this Thursday’s meeting to get the ball rolling… @elonmusk’s announcement was very helpful,” he said in part.
So long as this trend persists, the narrative surrounding it will likely do wonders for Bitcoin’s price action and potentially lead to higher highs.
Featured image from Unsplash. Price data from TradingView.