The Bitcoin price started correcting almost immediately after Elon Musk announced that Tesla can now be bought with Bitcoin. Bitcoin had initially dipped, losing around 4% at midday, and continued to correct downwards the following day.
Bulls reclaimed momentum a few minutes after he made the series of tweets and Bitcoin began working its way up. As of publication, Bitcoin has nosedived to $52k, marking 8.96% in daily decline. Bulls are still steadfast on board. But if the price tap is temporary, the asset could drop significantly as there will be no momentum to sustain prices.
Tesla’s sheet has already profited from its Bitcoin investment, accumulating more in external ROI than in all its 13 years of existence, but the numbers are about to surge even higher as the growth rate increases significantly.
Breaking this down was an observer who analyzed Tesla’s growth rate saying:
“If just 3% of Tesla sales are in Bitcoin, that’s $1B of Bitcoin buying per year locked into the balance sheet.
But Tesla sales are growing 30% p.a.
Bitcoin adoption growth is similar.
So you are looking at a 50%+ growth rate on $1B Bitcoin per year being sucked into Tesla.”
Institutional investors are being advised to follow suit. “When Apple?” says Joseph Young, asking when the tech company will allow users to buy its products with Bitcoin. This may soon become a reality, seeing as Coinbase says a decent number of leading tech companies are already acquiring Bitcoin privately.
Recently, we noted that Microsoft has begun asking Xbox users whether they were interested in making subscription payments with Bitcoin. If a company like Apple undertakes this route, the market could surge more than 2x considering the value of the company, thanks to its loyal customer base.
Meanwhile, Bitcoin proponents who pledged to purchase Tesla vehicles once the company begins to accept Bitcoin payment have doubled in their number. Although Justin Sun and analyst CryptoDog revealed they were buying Tesla, following the announcement, more Bitcoin users are expressing willingness to patronize the carmaker as the payment method is considered most efficient and more importantly highly favorable for the market, as Musk revealed that there will be no conversion of Bitcoin to fiat after payment.
The next few weeks are exciting for Bitcoiners who are expecting a full market turnaround as market sentiments are expected to become even more bullish.