10.02.202112:41 Forex Analysis & Reviews: The effect of Tesla and other large investors: what awaits Bitcoin and other cryptocurrencies in the spring

On February 8, an announcement took place, which, in many ways, will become decisive for the cryptocurrency market, especially bitcoin. After a rapid growth to $48,000, the main digital asset dipped slightly, stopping at around $45,700. However, experts believe that this is only a temporary phenomenon and the position of bitcoin will continue to strengthen.

Obviously, the main reason for the future growth of the main cryptocurrency was a message from the founder of Tesla about a large investment in a digital asset. A $1.5 billion investment from one of the world's foremost companies is a clear signal to other potential major investors. In this case, Tesla acts not only as a kind of pioneer but also as a guarantor of the security of both carrying out operations with cryptocurrency on an ongoing basis and investment injections.

It is also worth noting that, despite the clear increased demand for cryptocurrency after the announcement of Tesla, the situation is radically different from 2017, when, after a sharp rise, the volatility of a digital asset played a cruel joke with traders. First of all, the situation in 2021 differs in the composition of the participants: if in 2017 the increased demand for cryptocurrency was created by retail traders, now a huge company with a multi-billion dollar capitalization reports about large investment injections and future cooperation. This is a sign of reliability for other large investors who will maintain interest in Bitcoin, which will not lead to a significant drawdown or a complete collapse of up to $20,000.

With a favorable coincidence of circumstances and an adequate reaction from other large investors, bitcoin may continue to grow in price and by the spring, it may reach the $53,000 mark. This growth dynamic will also benefit other cryptocurrencies such as Ethereum. Even though today is already February 10, altcoin continues to rise in price against the backdrop of Bitcoin's success. The bottom line can be said that Tesla's statement of intent could radically change the balance of power and attitudes towards the cryptocurrency market. And if Musk's company is consistent, it will surely attract a steady stream of large investments from other giants in the world markets.