Wedbush noted the probability of less than 5% that public companies will adopt BTC over the coming 12 to 18 months.
Privately-held investment firm Wedbush Securities said that there would be a rise in corporate adoption of Bitcoin fueled by the decision by Tesla Inc (NASDAQ: TSLA) to invest in BTC. In a note released on the 15th of February, Wedbush Securities noted its opinion on Tesla’s BTC investment and its impact on the corporate world.
Tesla Bitcoin Investment to Boost Further Corporate Adoption
Tesla revealed its Bitcoin investment in a filing with the US Securities and Exchange Commission (SEC) on the 8th of February. In the filing, Tesla said it had purchased $1.5 billion worth of Bitcoin as part of its updated investment policy. The electric vehicle company also revealed plans to start accepting Bitcoin as a form of payment in exchange for any of its products in the near future.
Following the news on Tesla’s $1.5 billion investment in BTC, the digital asset spiked 13%, reaching a record high. Less than 24 hours after the announcement, Bitcoin also rallied more than 22% to reach one of its previous all-time high of around $47,500. Interestingly, Bitcoin surpassed Tesla in its market valuation following the automaker’s investment announcement.
At press time, Bitcoin is down 0.04% to $49,429.75.
Analysts as Wedbush Securities said that Tesla’s decision to begin accepting Bitcoin payments could be a “paradigm-changing move for the use of Bitcoin from a transaction perspective.”
According to a Business Insider report, Wedbush believes that Tesla’s Bitcoin investment could be a “game-changer” for the cryptocurrency. The investment firm added that Tesla’s acquisition could also trigger wider adoption of blockchain technology over time.
Wedbush noted the probability of less than 5% that public companies will adopt BTC over the coming 12 to 18 months. The analysts mentioned Bitcoin’s volatility as a reason behind the prediction. However, the analysts added that Bitcoin adoption among public companies could move “remarkably higher” considering its growing adoption globally.
Wedbush Comments on BTC Recent Gains
Referring to Bitcoin’s significant increases over the past year, Wedbush said that the BTC frenzy is not a “fad.” Instead, the firm said it signifies the growth of the digital asset and in the blockchain space.
Speaking further, Wedbush noted:
“…We believe the trend of transactions, Bitcoin investments and blockchain driven initiatives could surge over the coming years as this bitcoin mania is not a fad in our opinion, but rather the start of a new age on the digital currency front.”
Additionally, Wedbush analysts mentioned companies that could benefit from Tesla’s new decision to accept Bitcoin payment. They are PayPal Holdings Inc (NASDAQ: PYPL) and Square Inc (NYSE: SQ).
At the time of writing, Tesla is trading at $791.40 in after-hours trading. The current trading price is a 0.61% loss over its previous close of $796.22. MarketWatch data showed that Tesla had climbed nearly 398% over the past year. Also, the automaker has increased by 12.83% since the beginning of 2021. Over the last three months. TSLA has also surged 95.11%.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
