Hello and welcome again to this week's edition of Overbit.com News. This week is a theme like many others over the past few months - Bitcoin broke new all-time highs again today.
Today Tesla, the world's most valuable Automaker, announced that it had purchased $1.5 Billion worth of Bitcoin for its balance sheet. This announcement comes two weeks after the founder of Tesla, Elon Musk, the world's richest man, added the hashtag #Bitcoin to his Twitter bio.
Today the Automaker announced in a filing with the Securities and Exchange Commission that it bought Bitcoin for "more flexibility to further diversify and maximize returns on our cash." In addition to the returns, Tesla also said it would start accepting payments in Bitcoin in exchange for its products "subject to applicable laws and initially on a limited basis."
After weeks spent on Twitter trolling the Doge Cryptocurrency, and speaking about Bitcoin on the social media platform Clubhouse, stating: "I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin." It seems that in private Elon was very bullish on Bitcoin and so are his companies.
While Elon is very bullish on Bitcoin, the rest of the world is bullish on Elon. Elon's confidence boost to Bitcoin marked another all-time-high to the market, clocking Bitcoin in at $47,500+ nearly shattering $50,000 - leading some people to speculate $100,000 isn't far away.
With the Bitcoin market back in full swing making new all-time highs, it seems the rest of the market may be catching up, too. And it seems to be catching the attention of the masses yet again.
A few weeks back, after retail traders were locked out of their favourite Robinhood stocks like Gamestop and AMC, many of them flocked to the cryptocurrency section and found themselves investing in one of the long-standing memes of the industry - Dogecoin. This brought DOGE, which was trading near its all-time lows, straight into the spotlight where it soared hundreds of percentage points since then. Year-to-date Dogecoin is up nearly 1,600%
As we mentioned above, Elon Musk even jumped on the DOGE brigade. He sent nearly a dozen tweets over the past month or so about the cryptocurrency during this brigade. Fanfare for one of the industry's oldest coins did not stop there. Celebrities continued to dominate in vocal support of DOGE, publicly buying large sums ranging from Mia Khalifa to rapper Snoop Dog, and even KISS band member Gene Simmons. While not being a believer in its value, legendary investor Mark Cuban bought some for his son and called it 'educational for him'.
Whilst all of this might just sound like pop-culture nonsense; it's nevertheless indicative of a much larger trend: the retail masses are becoming exposed to cryptocurrency en-masse. Many people like to draw parallels to 2017 in regards to this type of hype and fanfare. Still, it could be safe to say with NASDAQ-traded companies investing significant amounts of their treasury into Bitcoin, we may be at a much different place in the cycle this time versus last.
As always, thanks again for reading. At Overbit.com, we'll continue to deliver you the news that matters to stay on top of all things markets.