Ever since institutional buyers joined the crypto industries, many people push for more prominent investors to hasten the sector’s adoption and expand the market. One of the world’s biggest tech companies, Tesla, invested $1.5 billion into the digital asset industry recently, linked to new changes coming into the sector.
The firm’s purchase led to the asset’s rapid surge, which moved from $39,000 to the $47,500 range, before slightly correcting. The booming industry expects more investments from institutional buyers, leading RBC Capital Markets to advise another well-known mainstream industry to invest in Bitcoin. Some other factors contributed to the new surge, mainly being the institutional investor’s interest in Bitcoin.
Bitcoin’s gradual rise to mainstream
The digital asset is gaining popularity with the new investors getting more knowledge on the digital asset while contemplating the best time to enter the market. Many companies have Bitcoin as their major investment, firms like MicroStrategy. MicroStrategy is a business intelligence firm that made multiple Bitcoin investments in late 2020, linked to the economic downturn.
The company was able to purchase the asset before it rose significantly. With the price, growth came bigger profits for the firm, which recorded multimillions in profit. Recently, Michael Saylor, the company’s CEO, explained that he organized a virtual conference to educate both institutional and retail investors on Bitcoin. Many companies attended the event, showing the rising demand for cryptocurrency investments.
The new Bitcoin investments gradually expand the crypto industry, with BTC’s recent market capitalization. The industry hit $1 trillion in market cap after the surge this year. Some weeks after that came the price correction that shrunk the industry’s cap to $800 million. Now, normalcy is returning with Bitcoin and Ethereum continually increasing in value.
RBC Capital market’s reason for Apple’s investment advise
The market has several things that ignited the Apple advice regarding the blockchain industry. The body also asked the tech giant to create an exchange where traders could buy and sell cryptocurrency. The body also asked Apple to invest some money into the digital asset industry like many institutional investors.
RBC capital market opined that the exchange investment would assure the firm a multi-billion dollar opportunity than the electric vehicle plans. Similarly, some sources claim that the tech firm had been making plans concerning Electric Vehicle creations with Hyundai and Kia’s likes, who are well-known motor companies.
Tesla also mentioned the possibility of including a BTC payment means for purchases within the platform. The news excited the crypto space and led to a surge, which took the price to the $44,000 price mark. Experts claim that RBC’s suggestion is a good one because of the recent success of some well-known trading platforms such as Coinbase and Paypal.
PayPal joined the crypto space late last year and reported that the firm generated more than its anticipated returns, leading to more expansion plans. The firm shared that it would expand its services and make millions of merchants receive crypto as a payment means. Many people sold their holdings, signaling the presence of selling pressure.