Cryptocurrency trader and analyst Ali published a post on Twitter/X about massive cash inflows into the two leaders of the cryptocurrency market – and Ethereum.
It is noteworthy that this inflow of tens of billions of US dollars into BTC and ETH took place within a single day.
A similar influx of funds into these coins was seen three years ago, Ali noted, and bitcoin subsequently soared to an all-time high.
“Bitcoin targeting $65,000?” Ali ponders
Ali wrote that today a staggering $19.7 billion is flowing into bitcoin and ethereum. He explained his excitement by saying that in December 2020, approximately the same amount of money will flow into these major coins. After that, in April 2021, bitcoin managed to cross the $65,000 level. The second all-time high for BTC followed in October, when bitcoin reached $69,000.
This record high has yet to be surpassed, but Ali seems to be hinting that it could happen in the near future if history repeats itself.
Here’s what really pushed bitcoin to $65,000
The main cause of bitcoin’s jump to $65,000 and the massive influx of capital into it can probably be explained by the fact that in February 2021, Elon Musk announced that his electric car company had purchased bitcoin, spending a whopping $1.5 billion on it and putting BTC on its balance sheet.
This was soon followed by an announcement that Tesla (NASDAQ:TSLA) would begin accepting bitcoin payments for its electric cars. On February 18, the price of bitcoin spiked to just over $52,000, and on April 15, it broke through the astounding $65,000 mark.
However, a negative event for bitcoin also occurred in April – Elon Musk reversed Tesla’s position and bitcoin was no longer accepted as Musk raised controversial environmental concerns about bitcoin’s proof-of-work mining algorithm. However, Tesla continued to hold BTC on its balance sheet.
According to recent data, Tesla has now sold all of its Bitcoin. This bitcoin chunk is valued at $417,230,028 at the time of this writing.
The flagship cryptocurrency is after staging a 5.16% increase from $40,865 overnight.
