Bitcoin Prices Bump Up Despite Strong US Dollar––Thanks to Tesla’s New BTC Payment Option

This Wednesday, March 24, Elon Musk dropped major news on Twitter: Tesla is now accepting Bitcoin as a payment option. While this announcement was expected after the company’s major investment in February, the timing was still a debate among investors.

Musk also announced that Tesla will be operating its own Bitcoin nodes and that the coins will not be converted to fiat alternatives. This move will substantially increase the company’s BTC assets––beyond its initial $1.5 billion investment.

The announcement is a sequel to Tesla's move on February 8, when it shook the market with its $1.5 billion Bitcoin purchase. Prices surged from $38,461 to $44,716 within a day, and it was up to $57,128 by the end of the month. Apart from a one-time spike to $61,519, BTC prices have flattened to the $54,000 to $58,000 range. The coin is now entering the latter stages of its bullish wave, prompting investors to make more conservative moves. 

Bitcoin was at $54,336 before news broke out––pushing prices upward by 4.69% to $56,883. However, BTC soon fell on the descent to a $52,356 low on March 25. 

Part of Bitcoin’s recent downward trend is due to the strong US Dollar, causing tension between the two assets. It’s currently at its highest point since November 24, but the latest stimulus check rollout, which injected billions into the US economy, is expected to soften the US Dollar’s value. 

Moreover, analysts expect an upward trend in BTC prices following Tesla’s move to accept Bitcoin payments. Economist Alex Krüger believes that others will follow suit. 

Tesla’s Bitcoin payment option is currently only available in the US, but it’s expected to spread internationally later in the year, according to Musk. 

While Bitcoin is quickly descending in value, a positive breakout is expected to challenge the coin’s $61,000 all-time high. 

Jordan Belfort, the stockbroker who inspired the Wolf of Wall Street, is one of many who have recently come public about their changing opinion on BTC. In 2017, he believed that the cryptocurrency would be regulated to non-existence, but he now believes that Bitcoin can skyrocket to $100,000. With more high-level interest in the coin, prices may recover despite conservative investments.