- Bitcoin became the first cryptocurrency in history to break through a market cap of $1 trillion
- Elon Musk’s Tesla joined the bitcoin bandwagon with a massive investment of $ 1.5 billion
- More rumors pop up from major institutions on possible investments such as Apple, Oracle, etc as bitcoin price surge past $55k
It was a huge milestone for bitcoin, the most desired digital asset in the world when it finally managed to break through a market cap of 1 Trillion for the first time in history. Bitcoin managed to achieve this feat on the 19th of February just a few days after pushing through the $50k mark.
What Fueled The Institutional Interest For Bitcoin Initially?
It all began for Bitcoin when MicroStrategy, the world’s largest business intelligence company took an interest in Bitcoin as an alternative investment option. The company made a public announcement last Aug, in which they said that they have made an initial investment worth $250 million. By end of last month, MicroStrategy had increased its investment share on bitcoin to 0.38% of bitcoin’s total circulating supply, accounting to around 71k BTC with a market value of over 1 Billion USD. Simply put it forward, it means the company has multiplied its investment by 4 times from its original investment in a span of 5 months. Another feat that emphasized the impact MicroStrategy has had on investing in bitcoin was when Morgan Stanley announced that it had bought 10% of Grayscales’ shares. Following all the interest the firm had received, Michael Slayor’s MircroStragey hosted a 2-day conference earlier this month to ‘educate corporates on investing in bitcoin’ which turned out to be a huge success with over 1400+ participants.
Since then, Bitcoin has been riding a wave of huge investments from institutions and high-net-worth individuals. Last Year also saw Grayscale increasing its investment in bitcoin significantly from 1.8 Billion to a massive 17.5 Billion at the start of the year 2021. Being an institutional asset manager, Grayscale managed to provide a strong statement to the global financial analysts & investment firms that it’s time for them to accept bitcoin into their firm’s balance sheets.
Elon Musk’s Tesla Invests $1.5 Billion in bitcoin
The most recent incident that created a ripple effect on digital assets including bitcoin was Elon Musk’s Tesla’s 1.5 Billion investment in bitcoin. This news sent bitcoin prices beyond $43, 000 set a new all-time high.
Before this investment, Elon Musk has been getting involved with the crypto community by posting various tweets that sent the market into a bullish sentiment. Leading up to Tesla’s bitcoin purchase on the 8th of Feb, Elon Musk changed his Twitter bio to simply read ‘bitcoin’ on 29th of Jan. Tesla disclosed its filing on bitcoin investment with the Securities and Exchange Commission on Feb 8th, the same day the company announced that it was accepting cryptocurrency as a payment method for purchasing Tesla vehicles.
There’re more rumors popping up daily of major institutions such as Morgan Stanley, Apple considering bitcoin as an alternative choice of investment. At the moment of writing this article, Bitcoin has registered a new ATH above $58,000 inching its way closer to the $60k mark. Only time can tell us how price action will react to future investments of similar nature.
$1 trillion, surely it’s just another number, but it’s a symbolic figure, and even when the market cap corrects from here onwards, the overall gain for the cryptocurrency as an industry will never go away.