What lies ahead for Tesla?
Here's what we learned about Tesla's $1.5 billion Bitcoin investment
As traders, it's important for you to be able to read a story properly. It is essential that you have an understanding of how the market works. It's an ability to do things that have a specific purpose. Being able to develop flexible strategies and act quickly.
Just days ago, the global automotive leader, Tesla had announced that it had invested $1.5 billion in bitcoin. But what was startling was the fact that the electric car giant plans to begin accepting Bitcoin as a payment method for its products.
PayPal has also announced its plans to add cryptocurrency as a payment option through Venmo, while Mastercard announced its plans to provide merchants with the ability to receive payments in cryptocurrencies later this year.
What was the impact of those disclosures?
These plans actually sent the price of the popular cryptocurrency to a new peak, exceeding $43,000!
These news became the most widespread topic in the financial world, while economic analysts and experts in the field attempted to provide their own answers and thoughts on the matter.
It is essentially an act
that has achieved a certain result. The big firms have that dynamic. They may
influence a broader area by any of their actions. In the long run, it might be
better to see where this act is headed and what the real plan is. Are they
setting the stage for something that might take place?
What is its purpose?
Tesla had said that buying Bitcoin was done as part of an updated investment policy designed to provide greater flexibility and maximize its cash yields. While the bombing of support messages on social media by Elon Musk, CEO of Tesla, for digital currencies sent the dogecoin price up by about 60%.
Here is something that should be noted.
What do you think happened when Musk put the hashtag #bitcoin on his Twitter profile in late January? The price of the digital currency rose by over 15% in 15 minutes!
It's a fact.
- Bitcoin started the year with a massive rally, peaking at an all-time high at over $40,000 in early January.
There was a decline of $30,534 at the end of January, following stronger regulatory review reports and bearish calls from analysts, while in the past month, the price of bitcoin has been steadily climbing.
Something to consider.
Here is an important factor for all of us to know. Volatility is a vital element for traders! If you don't have volatility, you don't have risk and opportunity. Risk and opportunity are both sides of the coin.
Μore willing buyers and more willing sellers at any price of an asset can create zero volatility.
What do you see in Tesla's movement and how will you execute in markets?
This article was written and submitted by IGM FX.
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