Musk-Effect: Bitcoin [BTC] Blasts Off As Price Nears $50K

Bitcoin’s [BTC] frenzy has kicked in yet again, this time leading to another powerful surge close to $50,000. It was not just an ordinary industry-induced rally. The latest bullish price action was accompanied by a massive endorsement by none other than Tesla CEO, Elon Musk.

So what’s the news?

Tesla just announced in a US Securities and Exchange Commission [SEC] Form that the car-maker not only purchased $1.5 billion worth of Bitcoin but was also planning to incorporate Bitcoin and other cryptocurrencies into their payment mode.

However, for most of February, it was Dogecoin [DOGE] that gained much traction after a series of tweets where Tesla and SpaceX exec. But his bets on Bitcoin was no less game-changing.

The tech giant first publicly announced support for BTC was on the 29th of January this year when he said that Bitcoin’s growth “was inevitable” shortly after changing his bio on the micro-blogging site to ‘Bitcoin’.

The FOMO has not just bolstered BTC to successfully breach its all-time high but has also induced the entire crypto market to go on a wild ride to levels never seen before.

Hence, this might be the most important bull market in BTC’s lifetime. Even as the crypto-asset dipped last month, the investor sentiment had stayed positive throughout the week which prompted the price to recover and trend higher.

One of the most important development was the fact that MicroStrategy continued its goal of pushing crypto to institutions as it hosted its first-ever Bitcoin for Corporations event last week. Thus paving the way for a new set of investors to enter the cryptocurrency industry.

BTC Tweet Volume

According to the data compiled by ‘The Tie‘, Bitcoin’s tweet volume hit a new all-time high with over 143K tweets sent over the last 24 hours, alone. The previous all-time highs were on the 2nd of January 2020 and the 22nd of December 2017.

Glassnode Co-founder had recently revealed that the supply of Bitcoin on cryptocurrency exchanges has dropped to levels last seen back in January 2018 right at the peak Since then another 1.8 million BTC have entered circulation, all of which have gone to strong hands accumulating.

Chayanika Deka: Chayanika is a full-time journalist at TronWeekly with over two years of experience. A graduate in Political Science and Journalism, she focuses on the political and financial impact of cryptocurrency and blockchain developments.