The start of February has brought yet another batch of evidence supporting the notion that the ongoing surge of crypto prices has deep institutional roots. Ignited by market whisperer Elon Musk and his Tesla’s announcement of a $1.5-billion Bitcoin position, the bullish cycle was reinforced by further news coming from the likes of Mastercard, Amazon and BNY Mellon.
The level of interest around the industry is certainly rising, as Bitcoin’s (BTC) price is rapidly becoming a widely discussed topic on most finance-oriented TV stations. With large corporate players at the helm of the rally, is the public firmly in the back seat, or does it have a say in how long the party will last?
The power of community
The power of corporate players to move crypto markets comes from two interrelated sources: their own capital invested in digital assets and the capacity to lead public sentiment, often by their own example.
Some companies wield greater social clout than others due to factors such as founders’ personal charisma or the brand’s public visibility. In Tesla’s case, these two have come together, resulting in the explosive effect we observed last week.
According to Nisa Amoils, partner at tech-focused rolling fund A100x, the fact that Tesla’s move was so consequential for the digital asset markets is no coincidence. Amoils told Cointelegraph that “Tesla and Bitcoin have more in common than meets the eye, and it’s not only volatility,” adding further:
“They both have communities — almost religion — behind them, and this is an important trend to watch that we also see in certain protocols and DeFi. Elon speaks to both retail and institutional this time, and he timed it right after the GameStop retail push.”
Amoils anticipated more corporate copycats emerging in the short term, along with continued price movement. In the long term, in her opinion, the recent parade of institutional validation will contribute to solidifying Bitcoin’s status not as just…