Bitcoin Postpones Bearish Correction as Tesla Adds BTC Payment Option |


An overnight price correction in the Bitcoin market after the Federal Reserve Chairman Jerome Powell’s testimony paused midway as Elon Musk came to the rescue.

The celebrated billionaire entrepreneur announced early Wednesday that his company Tesla now accepts Bitcoin as payments for its electric vehicles. He added that Tesla uses only internal and open source software as it operates Bitcoin nodes directly, thereby removing the necessity of having a third-party custodian and payment service.

How To Get Free Crypto  

“Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency,” Mr. Musk confirmed.

The milestone announcement followed almost a month after Tesla revealed in its securities filings that it bought $1.5 billion worth of Bitcoin sometime in January 2020, when the cryptocurrency was trading inside the $30,000-40,000 price range. BTC/USD had surged by almost 60 percent after Tesla’s filing.

Bitcoin Price Jumps

The latest Tesla announcement raised expectations of a rally repeat in the Bitcoin market. Carl Eric Martin, a popular crypto-based Swedish Youtuber, said he is “super insanely incredibly extremely extraordinary bullish” on Bitcoin for the rest of 2021.

And a green candle flashed on the Bitcoin chart right after Mr. Musk’s tweet. The cryptocurrency climbed more than 1 percent, hitting an intraday high above $55,600, offsetting the impact of Mr. Powell’s testimony before Congress on Tuesday afternoon that lower appetite for riskier assets.

Bitcoin undergoes a rebound after the Tesla announcement. Source: BTCUSD on

The Fed chairman said he expects a strong economic recovery in the US this year after the vaccine rollout but stressed that he does not expect Joe Biden’s $1.9 trillion stimulus package to cause an unwelcomed rise in inflation. He also noted that the Fed has enough tools if inflation goes out of control.

Coinbase Banner  

As Bitcoinist covered earlier, hardcore Bitcoin bulls base their upside forecasts on higher inflation rates caused by the Fed’s quantitative easing programs and the US government’s trillions of dollars worth of coronavirus stimulus packages, both of which reduce the US dollar’s purchasing power.

A boosting economy removes the necessity of selling the US dollar for riskier assets. That explains why the greenback surged on Tuesday while stocks and bitcoin fell amid Mr. Powell’s testimony.

Adoption Curve

Meanwhile, the prospect of US dollar devaluation remains higher as the Biden administration plans a $3 trillion government spending program to boost infrastructure, clean energy, childcare, and education.

It tends to benefit Bitcoin for its pro-scarce, anti-inflation features as a gold-like safe-haven asset, prompting many analysts to say that more corporates would copycat Tesla’s investment into the cryptocurrency.

FreeBitcoin Banner  

“Microsoft, Apple, Google, and Facebook would be insane not to put at least 1% of their hundreds of billions in treasury assets (mostly held in very low yield govt bonds) in Bitcoin,” said Vijay Boyapati, the author of the Bullish Case for Bitcoin. “Their treasuries are like a giant ice block subject to the unrelenting swelter of US inflation.”

Go to Source
Author: Yashu Gola

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.