Analysts believe that Bitcoin's future will be determined by the two largest corporations – MicroStrategy and Tesla, which have invested considerable amounts in the leading cryptocurrency.
On the morning of March 8, the main digital asset gained 4.2%, that is, to $ 5105. Last week, its price rose by 7.92%. It later moved in this range, falling to $ 5079. And although it attempted to consolidate at the current levels, the success varies. At the same time, experts remind that everything can change any moment now.
The actions of large companies such as MicroStrategy and Tesla, which have invested the most in the main cryptocurrency, can become a catalyst for radical changes. Previously, MicroStrategy purchased the BTC for $24,000 per 1 coin. The company's total investment in the main digital asset was $2.186 billion. On the other hand, the leader of the electric car market, Tesla, does not lag behind it, which also invested $1.5 billion to this cryptocurrency a month ago.
However, the investment in an innovative means of payment did not bring the desired result. Moreover, such steps led to the collapse of Tesla shares by 30%. MicroStrategy suffered even more, with its securities collapsing by 50%. This provoked panic in the market and among the management of corporations.
Therefore, experts highlighted that the sharers of Tesla and MicroStrategy turned out to be dependent on Bitcoin's dynamics. However, this interdependence could turn against BTC if corporate leaders decide to get rid of the tokens. According to Gary Black, Goldman Sachs' former investment director, companies can stop their shares from declining if they sell Bitcoins. Now, Tesla and MicroStrategy can use the surplus funds that will appear during deals to buy their own securities.
Such a recommendation is particularly relevant for an electric vehicle manufacturer. It can be recalled that many investors closed long positions in Tesla securities after Elon Musk placed them in such a risky asset as Bitcoin. As for MicroStrategy shares, they maintain their high value despite the current decline. Lawrence Lewitinn, CoinDesk's editor, said that their price is significantly overpriced compared to the price of the BTC tokens that the company owns. Since September 2020, MicroStrategy securities have overtaken Bitcoin in growth, and now this trend continues.
Currently, Bitcoin's dynamics turned out to be dependent on the further actions of its main holders – Tesla and MicroStrategy companies. If corporate executives follow the advice of analysts and start selling cryptocurrencies, this could bring down the market. Experts warn that the massive sale of a huge number of coins will provoke another collapse in the crypto market, which will push Bitcoin to the bottom.
The material has been provided by InstaForex Company - www.instaforex.com