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

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.”

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.