Tesla bought Bitcoin heavily, the next tipping point of the bull market?
When the bull market comes, it seems that all good things will come together. The most recent big positive is undoubtedly that Musk officially announced that he has bought Bitcoin, and that he has bought $1.5 billion in Bitcoin.
As a listed company, Tesla disclosed in its recent report submitted to the US Securities Regulatory Commission SEC that Tesla invested in physical gold, gold ETF and $1.5 billion in Bitcoin. Among these assets, physical gold and gold ETF are obviously assets against inflation in the traditional sense, so investing in gold is not surprising, while investing in Bitcoin is a relatively bold move among current US listed companies.
After reading this report carefully, we found that its investment time was December 31, 2020, which means that Tesla bought $1.5 billion in Bitcoin as early as last year.
If we observe the price trend of Bitcoin last year, we will find that the highest price of Bitcoin last year was about 28,800 US dollars, so Musk's holding cost will not be higher than this price, and it has risen by at least 50% so far.
Tesla bought Bitcoin last year, but Musk’s first order on the Internet this year was Dogecoin, and then he quietly changed his Twitter resume to Bitcoin, calling for Bitcoin, And it was only recently that he began to disclose with great fanfare that he had bought Bitcoin.
And now that Musk has announced the news, it will have a great impact on American technology companies and all retail investors around the world.
In the past, we saw that MicroStrategy was the only technology company that frequently bought Bitcoin. Institutions such as Grayscale and Tianqiao Capital were still financial investment institutions, so there were not many technology companies selling. In the future, I believe that more and more technology companies will deploy Bitcoin like Tesla.
In addition to the company, Tesla also has an immeasurable impact on ordinary retail investors. It is an Internet celebrity company in the eyes of many post-90s and post-00s. I found that the post-90s around me who usually don't pay much attention to Bitcoin or the blockchain have begun to wonder why Tesla bought Bitcoin. Such curiosity will definitely have a wide-ranging influence among all the post-90s and post-00s who pursue fashion.
This is very similar to the situation in the past bull market, when the market began to ferment, Bitcoin gradually went out of the circle and began to have an impact on ordinary retail investors.
From an investment point of view, Bitcoin is still a highly volatile risky asset. Therefore, if a company wants to buy Bitcoin, it will generally not allocate a lot of money, and they will only buy a small amount of money that does not affect capital turnover. But that amount of funds is also amazing compared to the volume of Bitcoin, which will quickly push up the price of Bitcoin.
Looking back now, I even think that the reason why Bitcoin was able to break through the $20,000 mark at the end of last year is related to the secret buying of companies like Tesla. Whether this is true will gradually emerge as more and more listed companies will disclose last year's annual report.
What's more noteworthy is that if under the influence of Tesla, new companies or institutions enter the market to buy bitcoin now or in the future, their cost will be at least $40,000.
Generally speaking, when a company or institution uses an investment product as an asset allocation, it will take long-term considerations. To put it bluntly, at least it will not sell until it doubles. Therefore, companies that buy Bitcoin now or in the future, at least from the perspective of investment, will tend to sell Bitcoin at least after $80,000.
Therefore, judging from these phenomena, Tesla's announcement of buying Bitcoin will likely be the tipping point for the next wave of bull market rally.
