On the third attempt, bitcoin broke the $ 50,000 barrier and reached $ 50,690. This was influenced by the announcement of MicroStrategy about the sale of convertible bonds worth $ 600 million to buy BTC.
MicroStrategy will sell these bonds to institutional investors, and the company intends to purchase bitcoins with the net proceeds from their sale. To date, MicroStrategy already owns 71,079 BTC worth about $ 3.5 billion. Against the background of this news, bitcoin crossed a new milestone by $ 50,000 and then adjusted to $ 49,500.
Having reached $ 42,000 in early January, Bitcoin traded between $ 30,000 and $ 40,000 for several weeks. In February, Tesla, owned by Elon Musk, invested $ 1.5 billion in the first cryptocurrency, causing Bitcoin to jump to $ 48,000. Thus, the current bull rally “Bitcoin was initiated by Tesla’s investments. Many analysts have already foreseen this, as Musk has been writing more about Bitcoin on social media in the past few months.
The head of the business development department of the Kraken cryptocurrency exchange Miha Grčar believes that the rise in the bitcoin rate is proof that corporations have become confident and ready to invest heavily in bitcoin. Institutions began to view bitcoin as a new investment asset. In addition to Elon Musk, various celebrities have recently become interested in bitcoin, which could also affect its growth.
Microstrategy already invested $ 425 million in Bitcoin last year, becoming the first public company to invest in cryptocurrencies. In doing so, Microstrategy paved the way for other institutional investors. What Bitcoin Did podcast author Peter McCormack said many companies would think MicroStrategy CEO Michael Saylor is crazy. However, now his actions can be called “brilliant”. Microstrategy was later followed by payments company Square, which bought 4,709 BTC in October.
We can say that Bitcoin is now in “uncharted territory”, because this cryptocurrency first broke the $ 50,000 mark. According to the COO of Skybridge Capital, Brett Messing, Bitcoin will continue to grow. Messing said he would not be surprised if bitcoin reaches $ 100,000 in the next 16 months. Catherine Coley, CEO of the US division of Binance, shares the same opinion.
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