Bitcoin surges above $44,000 to record after Tesla buys $1.5 billion worth of Bitcoin
- Bitcoin’s price reached to an all-time high, breaking above $44,000 mark, after Tesla declared a big stake in the famous digital coin.
- Tesla also said it would start accepting payments in bitcoin for its products.
The much awaited news for the crypto community is here. Elon Musk’s Tesla has bought $1.5 billion worth of Bitcoin. According to filing with the SEC Tesla stated that it bought Bitcoin for “more flexibility to further diversify and maximize returns on our cash.”
The move caused the price of Bitcoin to surge to a new all-time high of $44,141 which is 15% higher within 24 hours according to Coinmarketcap.
Wedbush’s analyst Dan Ives has commented the move saying that it could be a chain effect pushing other companies to invest in BTC also. “It will have a ripple effect across corporations around the globe,” he noted. “Potential game changing move for the use of bitcoin from a transactional perspective,” Ives added.
Tesla’s investment in Bitcoin comes after Elon Musk talking up Bitcoin inspired by the token “Dogecoin.” Elon made couple tweets related to “Dogecoin” which many crypto enthusiasts considered them as trolls. Furthermore, he added “#bitcoin” to his profile which made many wonder about whether he had invested in Bitcoin and about the future of Bitcoin. In addition, he tweeted “in retrospect, it was inevitable” leaving crypto analysts in doubt.
In retrospect, it was inevitable— Elon Musk (@elonmusk) January 29, 2021
Moreover, 2020 was a year where many large financial institutions started investing in Bitcoin. Microstrategy invested $1.3 billion worth of Bitcoin and its CEO Michael Saylor has played a huge role in promoting Bitcoin.
Recently Microstrategy, held a conference called “Bitcoin for Corporates” trying to convince more corporates to invest in Bitcoin. The Bitcoin for Corporations program attracted 8,197 attendees from 6,917 different enterprises according to the CEO Michael Saylor. The crypto analyst Ran Neuner tweeted “I can confirm that Elon Musk had at least 3 people at the event, including 2 from treasury.”
Tesla’s investment in Bitcoin just proves the fact that Bitcoin is being widely accepted by large prominent companies. Paypal in 2020 launched cryptocurrency services. Also Fidelity Investments and Square announced their movements to the crypto space.
high-profile investors such as Paul Tudor Jones and Stanley Druckenmiller have express interest to invest in Bitcoin, which has boosted Bitcoin’s reputation positively. Analysts believe that Bitcoin could serve as a safe have asset and a hedge against inflation. Furthermore, some believe that Bitcoin could replace gold as a store of value.
Bitcoin has grown 300% in 2020 alone and there are predictions that it could reach $100K in 2021 or as high as $500K in the near future.
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