Bitcoin adoption increases, while price remains range bound
Key takeaways: Crypto leaders stagnate gains as the market moves sideways. Elon Musk says people can now buy Tesla vehicles with bitcoin.
Bitcoin continues to trade in a range bound fashion while experts hint that the bull run might be coming to an end. Currently BTC is trading under the 50 period moving average, after price got rejected at $57,000. Clear resistance is located at $57,000 & $62,000, with local support still being around the $48,000 level. While intra-day volatility has been prevalent, volatility (historical) has not had a breakout since late February, further indicating that the market has plateaued for the time being.
According to Glassnode, the late stages of the BTC bull run seem to be setting in. Glassnode stated in its report that the number of investors holding small amounts of Bitcoin have been steadily increasing, which shows the desire to gain exposure despite market volatility. Contrarily, the number of BTC addresses holding more than 100 Bitcoins has slightly decreased. It is documented that a decline in the number of Bitcoin whales is highly correlated to the start of a bear market.
Mass Adoption continues
As price and interest rise, so does adoption. On Tuesday Elon Musk announced that it is now possible to buy Tesla vehicles with bitcoin. This comes as no surprise as last month the automaker revealed that it had bought $1.5B worth of bitcoin. While this feature is only for U.S. based customers at the moment, Tesla states that people outside the U.S. will be able to purchase Tesla vehicles with bitcoin later this year.
In addition to Tesla, the finance giant Morgan Stanley has recently launched access to bitcoin investment vehicles, which are available for their high net worth clients and investment firms. This makes it the first U.S. bank to offer its clients exposure to the cryptocurrency market. It is likely that other big banks will follow in Morgan Stanley’s footsteps and offer similar products as widespread demand increases.