Bitcoin Jumps Following the News Tesla will Accept Payments in BTC


March 24, 2021 | AtoZ MarketsElon Musk strikes again. The business mogul has announced that people can now buy a Tesla with bitcoin, and the crypto tackles €48,000.

In a series of tweets on Wednesday, Musk quoted “Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.” This follows the €1.5 billion worth of Bitcoin bought by Tesla back in February.

BTC price which has already seen significant growth this year jumped on Musk’s announcement. Recovering above €47,000, after losing momentum in recent weeks, an “Elon candle” had given bulls a reason to smile on Wednesday. Data from TradingView & Coindesk presents BTC/USD gaining over 3% in less than an hour, up 6% on the day.

Source: TradingView. BTC/USD 1-hour candle, Bitstamp.

Tesla’s BTC Plans

For now, this service is only available to US customers but will be extended outside the US later this year. Musk said that “Tesla is using only internal & open-source software & operates Bitcoin nodes directly.” 

The Elon Musk Effect

In recent months the Elon Musk effect is certainly given the media something to talk about. The entrepreneur’s pro-bitcoin tweets have sent the markets into a frenzy. Moreover, this has had a domino effect on others going green on the digital asset. Bitcoin’s extraordinary 700% surge over the last 12 months has been helped by this increased adoption.

Wednesday’s announcement has caused interest among analysts on whether Tesla’s BTC plans would spark another bull run.

In support of this interest was Rekt Capital who cited (complimented by the below chart) that “Bitcoin is currently rallying towards the red area, forming a bullish Morning Star candlestick formation from the blue support area,”

Source: Rekt Capital Twitter. BTC/USD 1-day candle chart with support/ resistance highlighted

Furthermore, crypto asset analyst Simon Peters quoted “Tesla’s decision to both accept Bitcoin payments for its cars and hold the asset on its balance sheet rather than exchange it into fiat will likely ignite momentum for the digital asset”.

Options Expiry Date

Bitcoin has been climbing in 2021, with a slight halt in March coming off the boil of a strong February. Currently residing just below the all-time-high of €51,000.

Now, all eyes turn to this coming Friday, March 26th, and the upcoming expiry event. Tipped to hit a staggering €6 billion. This overshadows January’s record of €4bn after which we have seen an 80% in Bitcoin in the span of a couple of weeks.

During this event Bitcoin’s options contracts worth approximately 100,000 BTC (€6bn), which enable users to buy or sell the Bitcoin at a determined price and within a specific time will expire.

According to Pankaj Balani, the chief executive of the Singapore-based Delta bitcoin and cryptocurrency exchange data suggests “a bullish outlook” ahead of Friday’s event.

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