The BTC price exploded to a new all-time high of $44,900 on Monday. This sudden surge came after the latest Tesla filing with the SEC revealed that the electric car company had invested $1.5 billion in bitcoin.
Crypto enthusiasts were excited by the news that the American vehicle giant would look to diversify its portfolio and maximize returns by channeling its cash reserves into alternative revenue assets such as BTC. The Elon Musk-run company also stated that it would soon start accepting payment in the popular digital coin.
BTCUSD Chart By TradingView
BTC Market Cap Primed to Hit $1 Trillion
Tesla’s decision to invest in bitcoin now sees the firm join other major institutions such as MicroStrategy and Square Inc that have also recently added the king coin to their financial reserves.
Following today’s record-breaking run, the BTC market cap has now surpassed $800 billion as per data from CoinMarketCap, up from under $200 billion this time last year.
Mike McGlone, a top strategist at Bloomberg, predicts a rapid climb in bitcoin’s market cap, especially now that Tesla has announced it is on board for BTC payments in the near future.
“Tesla may be [the] catalyst to get the Bitcoin market cap to $1 Trillion. The firm’s disclosure that it’s investing in Bitcoin and accepting the cryptocurrency for payment is a stepping stone similar to onboarding by PayPal in October,” McGlone commented while calling for the coin to hit $50K.
The explosive BTC rally has now seen its market cap surpass that of smartphone manufacturer Samsung as it rapidly closes in Elon Musk’s Tesla.
According to Scott Minerd, the CIO of investment company Guggenheim Partners, BTC has now entered into the global economy’s realm of respectability.
AAVE Off to Reclaim its Previous Price Record
AAVE is emerging as one of the best performing cryptocurrencies entering the new week. The second-largest DeFi token surged by over 22% on Monday, confirming a bullish reversal following a nearly 28% dip from its recent peak at $547.
At the time of writing, AAVE/USD is trading at $501.71 and looks set to reclaim its previous price record or set a new lifetime high.
AAVE/USD Chart By TradingView