Bitcoin Surges amid Tesla's Bitcoin Sales

After nosediving below the psychological price of $50k, Bitcoin (BTC) is back on top, gaining more than 9.7% in the last 24 hours, according to data from on-chain metrics provider Santiment.

BTC is trading at $54,767 at the time of writing, according to CoinMarketCap. Market analyst Joseph Young recently disclosed that fear in the Bitcoin market has caused a drop to lows of 48.5k for the cryptocurrency. 

Bitcoin's price decline was partly triggered by the speculations that U.S. President Joe Biden’s administration would increase capital gains taxes, which sparked fears that it could subsequently affect how digital asset investments are taxed.

Tesla's Q1 earnings

Meanwhile, Tesla has reported gains, after selling Bitcoin and generating $272 million in proceeds in the first quarter of 2021. In an investor call event, Tesla revealed its Q1 2021 earnings report and showed it had made $101 million in profits from the sale. 

Crypto data provider 'Documenting Bitcoin' acknowledged that Tesla has made more revenue from its Bitcoin sale than 14 years of car selling.

Bitcoin futures market gets reset

According to crypto analyst Joseph Young:

“Bitcoin futures market is completely reset [for now]. Funding is back to negative / neutral. It means the majority of the market isn't long = not overcrowded.”

This could, therefore, be translated to mean that the volume is not very high. 

Bitcoin in the recent past hit an all-time high of more than $64k as the leading cryptocurrency has enjoyed a remarkable bull run since it broke a 3-year high of $20k in December 2020. This uptrend has been boosted by an overwhelming appetite for BTC by institutional investors like MicroStrategy, Tesla, Square, and Grayscale among others. 

As some analysts speculate that a Bitcoin price of $100k is on the horizon, time will tell whether this will be achieved in 2021. 

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