Australia-burst!Musk bought 15 billion US dollars, Bitcoin broke through 43000 US dollars | Australia Chinatown

Release your eyes, put on headphones, and listen~!
On Monday, February 2, Tesla announced that it is expected to start accepting Bitcoin as a form of payment. According to the new policy, Tesla will

On Monday, February 2, Tesla announced that it is expected to start accepting Bitcoin as a form of payment. According to the new policy, Tesla has invested a total of $8 billion in Bitcoin.

As soon as the news came out, Bitcoin pulled up in a short-term and quickly climbed to the $4 mark. After that, the momentum continued. Bitcoin rose by 11% during the day to $43172, and hit a record high.

According to AssetDash data, the current market value of Bitcoin exceeds US$7900 billion. Compared with the market value of well-known companies’ stocks, it ranks 8th, surpassing Facebook (currently reported at 7651.57 billion US dollars) and following Tesla (currently market value) Reported 8078.29 billion US dollars).

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The U.S. block chain sector rose short-term before the market, the ninth city rose more than 20%, Riot Blockchain, Marathon Patent rose more than 15%, Canaan Technology rose 14%, and Bit Digital rose more than 11%.

In its latest announcement, Tesla stated that as part of its latest investment policy in January, it has invested a total of US$1 billion in Bitcoin and may acquire and hold digital assets from time to time or for a long time.
Tesla stated that it expects to begin accepting Bitcoin as a payment method for its products in the near future, comply with applicable laws and will initially proceed on a limited basis.Tesla said that it may invest part of such cash in specific alternative reserve assets, including digital assets, gold bars, gold exchange-traded funds and other assets under the new policy in the future.

01
Why does Musk invest in Bitcoin?

The most important factor is that the same people may invest in Bitcoin and Tesla.

Forbes magazine columnist Leeor Shimron compared the price correlations of Tesla, Bitcoin, and the S&P 500 index in the past six months in an article, and found that Tesla and Bitcoin have been in the past six months. Here shows a strong correlation of 0.615, far exceeding the correlation between these two assets and the S&P 500 index.

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The author believes that the reason for this result may be that Tesla and Bitcoin have similar investor bases, not only have similar values, but also believe that technology can solve many social problems, and they are generally optimistic.

In addition, among investors holding the above two assets, retail accounts for a large proportion.Among them, Bitcoin was originally started by retail investors, and Tesla was also held by retail investors as a heavy stock of many funds.

At the same time, many investors in Tesla and Bitcoin are long-term holders with great confidence in them.These players are convinced of technology and its potential social impact. No matter how the two assets at hand fall, they will continue to hold them, and there is no fear of high volatility.

Most notably, in front of Tesla and Bitcoin, millennials choose to join the game!

A previous survey by Charles Schwab showed that among the stock assets held by millennials, Tesla and the Bitcoin Trust Grayscale Bitcoin Trust ranked in the top five, surpassing Netflix, Microsoft, Alibaba, and Warren Buffett. Berkshire Hathaway under its umbrella.

In addition, Musk has realized his huge power in the digital currency market.

There has even been market analysis comparing Musk's influence on digital currencies with the influence of Fed Chairman Powell on the US stock market.

In the past few weeks, even if Musk just changed on social media ""Signature, or talk about how much you recognize the digital currency in the audio live broadcast, the digital currency will rise accordingly.

Musk's influence in the digital currency field is not only limited to Bitcoin, even the very niche digital currency Dogecoin can rapidly rise because of Musk's words.It shows his extraordinary influence in this field.

On Monday, when the news that Tesla spent $15 billion to buy Bitcoin came out, it seemed to give Bitcoin the strongest support, and Bitcoin naturally rose.

Faced with the same group of like-minded investors, coupled with unparalleled influence, in the eyes of many market analysts, Musk's choice to invest in Bitcoin can be regarded as a stable and profitable business.

However, investors need to be aware that as U.S. bond yields and the U.S. dollar rebound, both Tesla and Bitcoin will face downside risks in the future.If there is a big drop, Tesla and Bitcoin may also fall simultaneously.

02
Musk has repeatedly "brought goods" for digital currency

This is not the first time Musk has "carried" digital currency.
Before, he changed his social media signature bar to "Bitcoin", and Bitcoin rose by 20%.

In the early hours of last Thursday morning, Musk suddenly posted a word on social media: "Doggo", and then he posted another picture of flames.

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The digital currency market moved after hearing the sound, and Dogecoin's gains rose rapidly by 50%.

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After a while, Musk still did not forget to "thank you" for the market's response, saying "No thanks", and at the same time forwarded a spoof picture made by netizens: Musk became the baboon elder in the movie The Lion King, holding up "dog dog currency".

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Musk has discussed Dogecoin before, and in 2019 also stated on social media that Dogecoin is his "favorite digital currency".

It is this digital currency that skyrocketed by 800% last week. The reason was that retail investors who were shorting GME suddenly found out Musk’s previous posts about Dogecoin and shared them in the WSB community.

Musk said in a previous radio show:

Sometimes I just make a joke with Dogecoin, just like the original intention of Dogecoin was created at the time-to make fun of digital currency.

However, fate sometimes jokes with people.Maybe someday, Dogecoin will become the currency of the world.

In the show, Musk reiterated that he is a supporter of Bitcoin:

I have to be cautious in my words and deeds here, because as long as I move my mouth, it may change the market.

For a long time, many of my friends have tried to persuade me to invest in Bitcoin.

Musk went on to say:

I think Bitcoin is good, and I am a supporter of Bitcoin.

I think those traditional financial professionals may soon accept Bitcoin.

Reprint Statement: This article is reprinted and published, which only represents the attitude of the original author or the original platform, and does not represent our views.Only an information publishing platform is provided, and the article may be appropriately deleted.Contact the original author who has objections and requests for deletion.

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