In early February, additional evidence emerged to support the idea that the continued growth of cryptocurrencies has deep institutional roots. Spurred on by market whispers by Elon Musk and Tesla announcing a $ 1.5 billion Bitcoin deal, the bullish cycle has been amplified by new news like Mastercard, Amazon and BNY Mellon.
The level of interest in the industry is definitely on the rise as the price of Bitcoin (BTC) is fast becoming the subject of widespread debate in most of the TV channels focused on financing. The crowd is in the backseat with top corporate representatives, or do they have something to say about how long the party will last?
Business players’ ability to promote cryptocurrency markets comes from two interconnected sources: their capital investment in digital assets and their ability to shape public opinion, often by example.
Some companies have more social influence than others due to factors such as the personal charisma of the founders or brand publicity. In Tesla’s case, the two got together, creating the explosive effect we saw last week.
It is no coincidence that Tesla’s strength has been so sensitive to digital asset markets, according to A100x mobile fund partner Lansa Amuels. Amoils told Cointelegraph that “Tesla and Bitcoin have more in common than they seem, and it’s not just volatility,” adding:
“They have communities – almost a religion – behind them, and that’s an important trend to watch out for, which we also see in some protocols and DeFi. This time Elon is talking to both individuals and organizations, and he’s calculated it right after GameStop retail. …”
Amoils expects more copies of the company to emerge in the short term and price action to continue. Ultimately, she believes that the recent Institutional Review Review will help cement Bitcoin not only as an investment tool, but also as a medium of exchange: “A unique asset with multiple functions.”
The focus here is on “retail and enterprise”. The acquisition of Tesla was very influential thanks to the automaker’s unique position as a high-tech company and as a well-known brand with great social impact. It is a reminder that institutional forces can have the greatest impact in financial markets today when they reach the public.
Feelings are king
High Street investors are more than just a set of seemingly quiet movie equipment as financial institutions and large corporations inflate property prices as they see fit. First, potential retail investors in the US alone are sitting with an amount of money roughly equal to the market value of the entire cryptocurrency, and that money awaits distribution.
Pat LaVecia, CEO and Co-President of Digital Securities Market Oasis Pro Markets, told Cointelegraph that the combination of one-time savings and the fear of missing out on price action could lure more people into the industry:
According to Oxford Economics, American households raised about $ 1.6 trillion in excess savings over the past year. When people are looking at home in new asset classes because interest rates are so low it can lead to an increase in interest [in cryptocurrencies]. Institutional sentiment is on the rise and the general public is seeing large organizations jump in and legalizing Bitcoin, so we might see a FOMO push for those still on the sidelines. ”
If we continue this logic, the large-scale influx of new retail investors may be a direct result of the current or next burst the organization has driven. Sooner or later, multiple iterations of this process should lead to digital assets reaching the Holy Grail of mass adoption.
Thus, tracking public opinion about a cryptocurrency is just as integrated as tracking enterprise jobs. So far, things have been going well on that front. Joshua Frank, co-founder and CEO of cryptocurrency provider The Tie, told Cointelegraph that Twitter activity on Bitcoin rose to a continuous high after the Tesla news.
Additionally, Bitcoin’s Daily Sentiment Score, which measures the extent of positive or negative conversations on a topic in the past 24 hours compared to its 20-day moving average, reached an annual high. These accounts show that in the short term, the mood of the Twitter users was very optimistic.