On the third attempt, bitcoin broke the $50,000 barrier and reached $50,690. This was influenced by MicroStrategy’s announcement of the sale of $600 million worth of convertible bonds 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 broke a new milestone by $50,000, after which it corrected to $49,500.
A source: Tradingview
Having reached $42,000 in early January, bitcoin has been trading between $30,000 and $40,000 for several weeks. In February, the company Tesla, owned by Elon Musk, invested $1.5 billion in the first cryptocurrency, as a result of which bitcoin jumped to $48,000. Thus, the current “bullish rally” of bitcoin was initiated precisely by Tesla’s investments. Many analysts have already anticipated this, as in the last few months, Musk began to write more often about bitcoin on social networks.
Miha Grčar, head of the business development department of the Kraken cryptocurrency exchange, believes that the growth of the bitcoin exchange rate is proof that corporations have become confident and ready to invest heavily in bitcoin. Institutions began to consider bitcoin as a new asset for investment. In addition to Elon Musk, various celebrities have recently become interested in bitcoin, which could also affect its growth.
Last year, Microstrategy already invested $425 million in bitcoin, becoming the first public company to invest in cryptocurrencies. Thus, Microstrategy “paved the way” for other institutional investors. The author of the podcast What Bitcoin Did, Peter McCormack, said that many companies would consider the head of MicroStrategy, Michael Saylor, to be crazy. However, now his actions can be called “brilliant”. Later, the example of Microstrategy was followed by the payment company Square, which in October bought 4709 BTC.
We can say that now bitcoin is in “uncharted territory”, because this cryptocurrency has broken through the $50,000 mark for the first time. According to the chief operating officer of Skybridge Capital, Brett Messing, bitcoin will continue to grow. Messing said he wouldn’t be surprised if bitcoin gets to $100,000 in the next 16 months. The same opinion is shared by the CEO of the American division of Binance, Catherine Coley (Catherine Coley).