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The price of bitcoin jumped above $ 47,000 on Tuesday, building on gains following news that electric car maker Tesla has invested $ 1.5 billion in cryptocurrency and could accept it as future payment for products.
After hitting a record high of nearly $ 44,000 on Monday, bitcoin prices BTCUSD,
hit $ 45,000, $ 46,000 and $ 47,000 later that evening, according to CoinDesk. Prices were last traded at $ 47,651 on Tuesday.
The new wave of bitcoin was sparked by a Tesla TSLA,
Regulatory filing with the Securities and Exchange Commission Monday. He revealed that Tesla acquired $ 1.5 billion worth of bitcoin in January and plans to accept it “as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate at the reception. ”
Lily: Musk’s Tesla says he invested $ 1.5 billion in Bitcoin, sending cryptocurrency to record highs near $ 44,000
It’s like Musk recently expressed his support for cryptocurrencies on his Twitter account.
For bitcoin devotees, it was a monumental decision by a large corporation to invest in digital currency and authorize payments. But on the other hand, some analysts have questioned Tesla’s decision, given the volatility of the cryptocurrency, as well as the stock prices of the electric car maker.
Even if the price of bitcoin were to increase fivefold in the past year, it could still collapse, Ipek Ozkardeskaya, senior analyst at Swissquote, said in a note. “The high volatility in the value of Bitcoin will therefore inevitably inject some volatility into Tesla’s revenue and decrease the predictability of the company’s performance.”
Bitcoin’s annual gain is up over 60% in 2021. That’s against a 4% rise for the S&P 500 SPX,
and a gain of 8.5% for the Nasdaq Composite Index COMP,
while gold GC00,
is down about 3% and the prices of CL.1 crude,
are up 20%.
Lily: Should I buy dogecoin? Why cryptocurrency prices are rising – but risky
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