Tesla’s $1.5 billion investment Set Bitcoin at Record High
It’s a marvelous rather exciting day if you are investing in Bitcoin and or Tesla. The cryptocurrency has significantly set a record high of $44,898.98 per BTC after the electric car (Tesla) mentioned in the regulatory filings that is on the verge of accepting it as a payment for its vehicles.
Tesla mentioned that it has invested $1.5 Billion in bitcoin as a move to invest some of the company’s cash in “certain specified alternative reserve assets.”
However, Bitcoin slumped back from its new record but it was still up with some 16% at more than $44,000 on Monday. At the same time, Tesla shares closed with a 1,3% higher.
In addition, the stock market is also in the green, with all the three major indexes completing at new highs.
The S&P 500 (SPX), which counts Tesla as a member, closed up 0.7%, while the Dow (INDU) rose 0.8% or 238 points. The Nasdaq Composite (COMP) closed nearly 1% higher.
Bitcoin Glides in Top Business Organisations
The purchase of bitcoin from many business organisations came after rally in 2020 when the price more than quadrupled. It’s brilliant that Tesla is joining a team of a handful of companies that have been disclosed with bitcoin holdings. The likes of software developer such as MicroStrategy Inc. went on and acquired $425 million worth of bitcoin. And it’s not surprising that the CEO Michael Saylor became very outspoken proponent.
The reason why Bitcoin was not considered reliable is that bitcoin along with other digital assets are considered indefinite-lived intangible assets, compared to fiat currencies. And any reduction in value below compared to the company paid for them.
Bitcoin went on and traded Monday at $43,602.68 according to CoinDesk. It price was at an average of $34,730.12 in January and the current is at eight times higher compared to the bitcoin’s 2020 low that was little under $,5000.
It’s not surprising that Mr Musk has shown a massive interest in bitcoin in recent years. After his tweet in 2018, the only cryptocurrency he owned was one-quarter of a bitcoin a friend had offered him, and today is worth more than $10,000.
Tesla is now making moves towards investing in Bitcoin and it’s a business strategy and move. On Monday, Dogecoin firstly rallied before taking back some of its benefits and it was up nearly 12% at $0.08 in the afternoon according to CoinDesk.
Bitcoin is moving towards something big that most companies will be flooding their way to purchase the digital currency.