S&P 500   3,845.08
DOW   31,037.68
QQQ   288.80
S&P 500   3,845.08
DOW   31,037.68
QQQ   288.80
S&P 500   3,845.08
DOW   31,037.68
QQQ   288.80
S&P 500   3,845.08
DOW   31,037.68
QQQ   288.80

These Two Catalysts Are Pushing Crypto Markets To New Highs

Monday, February 8, 2021 | Thomas Hughes
These Two Catalysts Are Pushing Crypto Markets To New HighsBitcoin And Tesla, The EV-Crypto Crossover

Bitcoin (BTC) made headlines this morning when it surged to set a new all-time. The new high which was just shy of $45,000 comes exactly one month after the last record-setting high was reached. Oddly, Bitcoin made headlines again with the aid of Tesla (NASDAQ:TSLA) when the EV leader announced a major purchase. Tesla, under the guidance of its visionary and eccentric CEO Elon Musk, revealed it had purchased $1.5 billion worth of the world’s leading cryptocurrency as it readies itself to accept Bitcoin payments.

According to the filing, the company will begin accepting Bitcoin in the near future. Tesla says it may or may not liquidate the Bitcoin upon acceptance which opens the door to trading gains and losses in the coming quarters. The move was foreshadowed by a Tweet made by musk just a week earlier. He talked the coin up as “on the verge of getting broad acceptance by conventional finance people. In our opinion, if it wasn't already the move by Tesla will help spur it along.

Tesla surged more than 2.0% following the announcement but that move is more to do with China’s rising EV sales than the BTC purchase. China reported this morning that auto sales rose by 25.7% in the country with sales led by EV. Bitcoin, on the other hand, surged more than 13% because of and in the wake of the Tesla purchase. The move created a very large white candle that broke the coin out to a new all-time high and set it up for another $7,150 in gains or 16.25% upside. And we think that estimate is conservative.

These Two Catalysts Are Pushing Crypto Markets To New Highs

Ethereum Futures Begin Trading At The CME

Not only is the breadth of cryptocurrency adoption widening but so is the depth. That can be seen in many places ranging from the growing market share seen in some of the alt-coins and also in the mainstream acceptance of a widneing number of coins. Hence the move seen today in Ethereum (ETH). Ethereum futures began trading on the CME this morning to little fanfare. The new contract, worth 50 Ether, is a cash-settled trade just like the CME’s Bitcoin futures.

For those of you that remember, the 2018 peak in Bitcoin (and all of cryptocurrency) prices was very nearly coincident with the launch of CME Bitcoin futures. While historical performance has great bearing on future price action those expecting Ethereum to see the same bearishness should take caution. Not only were the market conditions in 2018 vastly different than they are now there is not the specter of regulation and specifically Chinese regulation hanging over the market.

Yes, the launch of Bitcoin futures was coincident with the top in cryptocurrency prices but it was not the cause of it. The Chinese government began a series of regulatory crackdowns in late 2017 and early 2018 that triggered the sell off. The bulk of the Bitcoin mining capacity was in China at the time and all those miners with their millions in Bitcoin flooded to the exits. Things are different now.

Ethereum: The Technical Outlook

Ethereum prices spiked more than 6.0% on Monday but this move is more to do with Bitcoin and Elon Musk (not to mention the growing value locked into Ethereum defi contracts) than it does with the CME futures. CME traders going short are already felling pain with the price of Ethereum not only moving up but very near the all-time high and begin led higher by Bitcoin. Now that price action is back above the $1,700 level a retest of the $1,763 all-time high will likely come very soon. Once that level is broken a move up to the $1900 to $2,000 range is expected.

These Two Catalysts Are Pushing Crypto Markets To New Highs

Tesla is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Tesla (TSLA)
2.5489 of 5 stars
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Tesla right now?

Before you consider Tesla, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Tesla wasn't on the list.

While Tesla currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastIs The Market Near a Bottom, Does it Matter?

Today’s interview is a little different, in that you get a LOT of market perspective from someone who’s been analyzing stocks from the ground up, for more than three decades. In this conversation, Kate chats with Nancy Zambell, the chief analyst for the Cabot Money Club Letter - and Nancy has a really deep and varied background in the financial industry - as she mentions in this interview, she’s been a banker, real estate professional, and a stock market analyst.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.