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Markets Report: Bitcoin tipped for $50,000 next as Tesla upends expectations

The shock $1.5 billion from Elon Musk’s company continues to ricochet among investors and mainstream consumers

Bitcoin stayed near all-time highs on Feb. 9 as the dust continued to settle from Tesla’s $1.5 billion buy-in.

Data from price trackers including CoinMarketCap and TradingView showed the largest cryptocurrency consolidating after printing its biggest ever daily candle—$7,580. 

Keiser: $65,000 short-term “in play” for Bitcoin

Bulls were already confident prior to Monday’s news, with Bitcoin passing $40,000 over the weekend. Elon Musk’s company then set the market alight with its filing with U.S. regulators and Bitcoin subsequently hit new record levels of $48,200.

At press time, BTC/USD was trading slightly lower than the highs, focusing on $46,000. 

“Two companies: MicroStrategy and #Tesla now own $4.5 billion worth of #Bitcoin. That’s just two companies,” popular trader Michaël van de Poppe tweeted on the day. 

“Imagine if 20, 50, or 100 decide to do the same trick. Then $40K per #Bitcoin will still be very cheap.”

BTC/USD consolidates just below $50,000. Source: TradingView

In terms of short-term predictions, Tesla had put the cat among the pigeons regarding traders’ expectations. Whereas February was formerly slated to be a consolidatory month versus previous highs of $42,000, now, eyes were on the imminent arrival of $50,000.

“#Tesla May Be Catalyst to Get #Bitcoin Market Cap to $1 Trillion — Tesla’s disclosure that it’s investing in Bitcoin and accepting the cryptocurrency for payment is a stepping stone similar to onboarding by PayPal in October, which points to about $50,000 as the next resistance,” Mike McGlone, senior commodity strategist at Bloomberg Intelligence, summarized.

Others were already there, amid claims that BTC/USD was unlikely to revisit levels below $40,000.

“#Bitcoin price, adjusted for stalled buy-orders stacked up at exchanges, is above $50,000 right now,” RT host Max Keiser continued in a series of Twitter posts.

“$65,000 short term in play, $220,000 in 2021 in play.”

Altcoins struggle to keep the limelight

Su Zhu of crypto investment firm Three Arrows Capital referenced the “hype cycle” from research firm Gartner to predict a watershed moment for Bitcoin was happening right now.

“If this is the last crypto Gartner cycle, which I think it is, then it stands to reason that it will extend many years and engender mass adoption (1B+ ppl),” he added.

“There will prob never be a chance to buy 85% down. You don’t sell AMZN on its second break of ATH, you respect the pump.”

For altcoins, which just days ago were outperforming, it was now a case of “catching up” with Bitcoin again.

Led by Ether, which at press time was approaching its all-time high from last week, major cap cryptocurrencies still put in mostly solid performance on the day. 

Some tokens suffered as a result of others’ success. XRP and Bitcoin Cash both lost their presence in the top five and top ten cryptocurrencies respectively as a result of reshuffles and strength from Polkadot, Stellar and Dogecoin, the latter also a favorite of Tesla CEO, Elon Musk.

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Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.