Bitcoin Hits $48,000 As Altcoins And Stocks Surge To New Highs

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Bitcoin price surged to new all-time highs above $48,000 a day after Tesla announced that it had invested $1.5 billion into bitcoin. This news also made stocks explode to new highs.

On February 8, bitcoin price broke out to the then all-time high at $46,794 after documents acquired from Tesla said that the company had allocated around 7.7% of its gross cash position to bitcoin. This investment gives Tesla a considerable $1.5 billion position in the top-ranked flagship crypto.

Data from TradingView shows Bitcoin is currently up by around 21.3% trading near $47,700 after peaking at $48,225 in the early Asian hours on February 9, 2021. In the meantime, most of the DeFi tokens and altcoins have also gained to notch double-digit gains for the day.

While some of the analysts are speculating on what big company will be the next to invest in the Bitcoin train, Royal Bank of Canada Dominion Securities analyst Paul Steves believes that Apple might be the next institutional player to join this trend.

If Apple were to launch a crypto exchange or decide to acquire some bitcoin, it may lead to an estimated $40 billion in yearly revenue, according to Steves.

Bitcoin’s bullish price action came at a critical time as the digital asset had seen a decline in general sentiment in recent days as the price struggled repeatedly to break past the $38,000 hurdle.

 TheTIEBTC price vs. 30-day avg. sentiment score. Source: TheTIE

Dogecoin (DOGE) also exploded as the buyers and bulls pushed the meme coin to new all-time highs at $0.0856. that move came after Mark Cuban gave some form of approval by referring to this altcoin as the “best entertainment bang for your buck available” in the cryptocurrency market.

When a Forbes reporter asks me about #dogecoin and whether it’s a bad look for crypto when people are buying it pic.twitter.com/YGs27Vdsxo

— Mark Cuban (@mcuban) February 8, 2021

Cardano’s (ADA) price exploded to a new multi-year high at $0.72, a gain of 100% since February 1, after the successful testnet implementation of smart contracts and the possibility of future DeFi integration enhanced by investors’ outlook for the project.

Traditional Markets Gain On Expected Stimulus Package

There is growing investor optimism involving the possibility of a new round of stimulus from the United States government, which includes direct payments of $1,400 and a tax credit of $3,000 for every child, which helped underpin the gains in the traditional markets on February 8.

The  Dow, S&P 500, and NASDAQ all recorded new highs and closed the day up 0.76%, 0.74%, and 0.94% respectively. Notably, the last six trading days have seen the longest winning streak for the S&P 500 since August 2021. Also, the Dow has experienced its best start to February since 1931, gaining 4.7% so far this February.

The altcoins have also benefited from bitcoin bullish momentum and most of them managed to rally by double-digits, with standouts like BitTorrent and Terra (LUNA) gaining over 100%.

BTC/USDT 4-hour chart. Source: TradingViewBTC/USDT 4-hour chart. Source: TradingView

Polkadot (DOT) gained 20.23% to a new high at $23.27. On the other hand, Elrond (EGLD) gained about 40.7% in the past 24 hours to reach a new all-time high at $191.73. Theta (THETA) also gained around 25.55% to set a new high at $2.86.

The general crypto market cap now stands above $1.3 trillion, and bitcoin’s dominance rate is 63%.


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