It is not a secret that Elon Musk, the world’s richest man and business tycoon behind many successful businesses like Tesla and SpaceX, set an upward trend in bitcoin value by tweeting about Bitcoins and investing $1.5 billion earlier this year. And since then, its value has witnessed a sudden surge encouraging many corporates to follow suit.
The currency currently rallies at $50000 after taking a steep plunge towards the end of last month to $43000, which was $55900 on 19th February this year. The BTC value reached the $50000 mark, which was a sudden 6.4% gain from $47,332 to $52636 within a gap of 24 hours.
According to news reports, the bitcoin market has witnessed 10% steady growth this month, the value that is known to have climbed the sixth time in a row this month, making it the first of its kind growth witnessed in the past seven years. Crypto analysts say that this trend is being encouraged by many corporates who have embraced Bitcoins as a new investment avenue.
Micheal Sayor’s MicroStrategy holds approximately $3 billion in BTC, which encouraged Tesla to march towards the lucrative market. Recently institutions like Galaxy Digital Holdings, Grayscale Bitcoin trust, Ruffer Investment Company, and more have joined the BTC bandwagon.
The most recent addition to the list of Institutions entering the Bitcoin market is Meitu Network Technology Co., Ltd, which is a leading software company based in China. Meitu announced its investment in 380 units of BTCs and 15000 units of ETH worth $40 million on 5th March this year.
According to the news report, this development comes just as the Founder of Meitu, Cai Wensheng, accurately predicted the rewarding opportunities the bitcoin market would offer and bought 10000 units of Bitcoins in 2018. The news report claims that the Meitu team states that this move aims to utilize the Bitcoin investment as an asset allocation strategy.
China has some of the largest global companies, such as Baidu and Alibaba — a large Chinese firm publicizing and legitimizing the purchase of cryptocurrencies could pave the way for even bigger players like Jack Ma to become officially involved through company funds.
The Board of Directors at Meitu strongly believes in the surging price of digital currency and hence chose Bitcoin as a lucrative investment avenue. The move is also motivated by the current trend of many institutions embracing cryptocurrency, including the traditional banking and insurance sectors.
Business insiders and Financial analysts have mixed views on the status of the world’s largest cryptocurrency for this year and the near future. However, they stress that despite the volatility, bitcoin will be a lucrative market. At the time of writing, the price of Bitcoin is 49,901 USD which is expected to fluctuate between $59,000 to $71,000 approximately by this June. The price is projected to reach an average of $99,000 by September.
By the year-end, it will touch $1,00,000. Crypto analysts also suggest that the BTC value may reach as high as $3,25,000 between 2022 and 2023 but can experience a sudden plunge within the same time period. 2025 is expected to experience a boom, with the price potentially rising to a whopping $4,00,000.